> For the complete documentation index, see [llms.txt](https://docs.asterdex.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.asterdex.com/trading/perpetuals/dividend-introduction-for-equity-perpetual-futures.md).

# Dividend introduction for Equity Perpetual Futures

This article details Aster’s operational procedures and calculation models for handling dividend events related to underlying stocks in round-the-clock traded equity perpetual futures. When the underlying asset enters its ex-dividend date, its price typically adjusts downward naturally. To align the perpetual futures price with this market movement and eliminate the resulting price gap, our system will trigger a one-off special funding settlement. Under this mechanism, users holding short positions will pay corresponding fees to those holding long positions, ensuring fair and balanced settlement.

### 1. Event Schedule & Process

The entire dividend adjustment process runs from the trading day preceding the ex-dividend date (defined as ex\_date - 1) up to the morning of the ex-dividend date (ex\_date). Since perpetual futures trade non-stop, ex\_date - 1 here specifically refers to the calendar day immediately preceding the ex-dividend date.

**KR Equity Perps** — All times in Korea Standard Time (KST)

| Date     | Time (KST) | System Operation                                                                                                               |
| -------- | ---------- | ------------------------------------------------------------------------------------------------------------------------------ |
| ex\_date | 03:30      | The funding interval is modified to 1 hour (takes effect at 04:00).                                                            |
| ex\_date | 07:30      | The contract is placed into reduce\_only mode.                                                                                 |
| ex\_date | 07:30      | The Mark Price vs. Index deviation threshold is tightened to 1%.                                                               |
| ex\_date | 08:00      | Special Dividend Funding is executed immediately following standard funding.                                                   |
| ex\_date | 08:01      | reduce\_only mode is disabled and deviation limits are restored and the funding interval is restored to its standard duration. |

**HK Equity Perps** — All times in Hong Kong Standard Time (HKT)

| Date     | Time (HKT) | System Operation                                                                                                               |
| -------- | ---------- | ------------------------------------------------------------------------------------------------------------------------------ |
| ex\_date | 04:30      | The funding interval is modified to 1 hour (takes effect at 05:00).                                                            |
| ex\_date | 08:30      | The contract is placed into reduce\_only mode.                                                                                 |
| ex\_date | 08:30      | The Mark Price vs. Index deviation threshold is tightened to 1%.                                                               |
| ex\_date | 09:00      | Special Dividend Funding is executed immediately following standard funding.                                                   |
| ex\_date | 09:01      | reduce\_only mode is disabled and deviation limits are restored and the funding interval is restored to its standard duration. |

**US Equity Perps** — All times in Eastern Time (ET)

| Date         | Time (ET) | System Action                                                                                                                  |
| ------------ | --------- | ------------------------------------------------------------------------------------------------------------------------------ |
| ex\_date - 1 | 15:30     | The funding interval is modified to 1 hour (takes effect at 16:00).                                                            |
| ex\_date - 1 | 19:30     | The contract is placed into reduce\_only mode.                                                                                 |
| ex\_date - 1 | 19:30     | The Mark Price vs. Index deviation threshold is tightened to 1%.                                                               |
| ex\_date - 1 | 20:00     | Special Dividend Funding is executed immediately following standard funding.                                                   |
| ex\_date - 1 | 20:01     | reduce\_only mode is disabled and deviation limits are restored and the funding interval is restored to its standard duration. |

### 2. Special Funding Rate: Calculation Logic

The special funding execution acts as a negative funding rate, meaning the funding fee is transferred from Short positions to Long positions.  The exact calculation formula varies depending on the type of dividend distributed by the underlying company.

#### Cash Dividend

For standard cash dividend distributions, the rate is calculated based on the dividend amount and the Mark Price adjusted for the dividend value:

Funding Rate = - \[Dividend Amount / (Mark Price − Dividend Amount)]

#### Stock Dividend

For pure stock dividends (where shareholders only receive additional shares), the rate is determined directly by the dividend ratio — the proportion of new shares issued for each existing share held:

Funding Rate = − Dividend Ratio

#### Combined Cash & Stock Dividend

In rare cases where a company issues both cash and stock dividends at the same time, the formula integrates both parameters:

Funding Rate = − \[Dividend Amount / (Mark Price − Dividend Amount)] \* (1 + Dividend Ratio)

Exemption from Funding Cap

During this special dividend settlement, the system will not apply the usual funding rate upper/lower limits. This ensures that long position holders receive the full dividend adjustment value as calculated, without being restricted by preset rate caps, so the settlement accurately reflects the economic impact of the dividend event.

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