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.

Note: All times mentioned below follow Eastern Time (ET).

Date	Time (ET)	System Operation
ex_date - 1	15:30	Adjust the funding interval to 1 hour; the new rule takes effect at 16:00.
ex_date - 1	18:00	The symbol will be changed to "reduce-only" mode, where opening new positions is restricted.
ex_date - 1	18:00	Tighten the allowed deviation range between Mark Price and Index Price to 1%.
ex_date - 1	20:00	Execute the special dividend funding settlement right after completing the general funding process.
ex_date - 1	Post-funding	Restore the symbol to normal trading mode, and reset the deviation limit to its standard level.
ex_date	00:00	Restore the funding interval back to its standard duration; the change becomes effective at 00:01.

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.