Pre-IPO Futures

1. Overview

Pre-IPO futures are derivatives whose reference asset is an underlying company that has not yet completed an Initial Public Offering (IPO) or, in other words, does not have shares listed on a trading venue. This contract gives you price exposure to changes in the underlying company's overall valuation (market cap). Like traditional equity futures, you do not hold equity in the company; the future gives you exposure to changes in the company's valuation through the contract's price movements. Once the underlying company completes IPO and lists on a public market, the contract will be converted to a standard Equity futures.

Important: this contract does not provide any ownership interest in, or economic claim on, the underlying company's shares. You will not receive any shares or securities at any point. The price of the futures contract does not represent an official valuation of the company.

Before the underlying company publicly submits preparatory listing documentation with the relevant regulator (e.g. the SEC for US listings), its actual total share count is not publicly disclosed, so OKX sets an estimated share count for the contract based on estimates derived from publicly available sources. Once the company publicly files its pre-listing documentation and discloses its actual total share count, OKX executes a rebase (proportional adjustment) to align the contract's parameters from the estimated share count to the actual disclosed share count. The core design principle of the rebase is value neutrality — your position value is preserved across the rebase.

In addition, once the company files its pre-listing documentation, OKX will leverage the official data so disclosed to configure a Price Band hard-cap protection for the contract to ensure its price remains within pre-defined parameters (such as the IPO price range). Order prices cannot exceed these caps.

2. What Is the Rebase

Pre-IPO contracts use a per-share pricing convention — contract price × the underlying company's total share count ≈ market cap. Before the IPO, however, the actual share count is not publicly disclosed, so OKX can only price the contract based on the estimated share count. Once official regulatory filings from the company discloses the actual share count, the contract's pricing basis must be aligned from the estimated to the actual share count. The rebase is this one-time alignment operation.

The key parameter of the rebase is the adjustment ratio (rebase_ratio):

rebase_ratio = actual share count disclosed in S-1 / OKX's estimated share count

Example: if OKX initially estimated the share count at 3 billion and the S-1 discloses the actual count as 3.3 billion, then rebase_ratio = 1.1. To preserve your position value, the rebase multiplies your contract count by 1.1 (increases) and divides the mark price by 1.1 (decreases), keeping your position's USD value unchanged across the rebase.

3. What the Rebase Means for You

The following changes are applied to your account automatically during the rebase — no action is required from you for the rebase itself. However, you should closely monitor your open orders and positions before the rebase is announced, during the rebase period, and after normal trading resumes, and adjust your strategy as needed:

• Your position value and account equity are preserved: contract notional and your account equity are unchanged across the rebase.

• Position quantity and mark price scale proportionally: contract count is multiplied by rebase_ratio, mark price is divided by rebase_ratio. Any unrealized PnL you had before the rebase is transferred to your account balance through an internal settlement during the rebase (converted to realized PnL); the position is re-opened at the adjusted mark price.

• Open limit orders are auto-adjusted: price ÷ rebase_ratio, quantity × rebase_ratio (buy rounds down, sell rounds up). Partially filled orders are canceled by the system; the filled portion is unchanged. You should review your open orders after the rebase completes to confirm your intended positions are in place.

• TPSL are canceled: all pending TPSL (including position TPSL, order-attached TPSL, and trailing TPSL) are canceled during the rebase and are not carried over. After normal trading resumes, please re-set your TPSL based on the adjusted mark price and position quantity.

• Strategy orders are stopped or canceled: running strategy orders (and trading bots) are stopped before the rebase; trigger orders, and chase orders are canceled.

• Trading is suspended during execution, then enters a Post-only phase: the rebase execution takes ~5 minutes, during which all order placement, cancellation, and modification is suspended; the contract then enters a Post-only phase. During this phase, you can only submit post-only orders; market orders, IOC, FOK, plain limit orders, new TP/SL, and trigger orders are disabled. OKX determines the Post-only duration based on market liquidity conditions; the duration is typically 2–5 minutes.

4. Example

Suppose before the rebase you hold 1,000 long ABCUSD UM X-Perp pre-market X-Perp contracts, with an average entry price of 80 USD, a pre-rebase mark price of 110 USD, and a contract face value of 1 ABC. At that moment:

• Unrealized PnL = (110 − 80) × 1,000 = 30,000 USD

• Realized PnL = 0

4.1 After the Rebase (rebase_ratio = 1.1)

The regulatory filings (e.g. S-1) discloses an actual share count 1.1x OKX's estimate, so rebase_ratio = 1.1. Immediately after the rebase completes, your account shows:

The 30,000 USD unrealized PnL you had before the rebase is converted to realized PnL through the rebase's internal settlement and credited to your account balance. The position is re-opened at the adjusted mark price of 100 USD, and unrealized PnL resets to 0. Total position value is preserved.

The 30,000 USD unrealized PnL you had before the rebase is converted to realized PnL through the rebase's internal settlement and credited to your account balance. The position is re-opened at the adjusted mark price of 100 USD, and unrealized PnL resets to 0. Total position value is preserved.

4.2 If the Mark Price Rises After the Rebase (to 110 USD)

After normal trading resumes, suppose the mark price rises to 110 USD:

This total is equivalent to the PnL in a counterfactual "no-rebase" scenario in which the price had risen proportionally on the original scale (110 → 121 USD), which would give (121 − 80) × 1,000 = 41,000 USD. The rebase does not change your ultimate economic outcome.

5. Risk Warnings

1. Risk control rules: for the conversion mechanism, price limit, mark price, and other rules of Pre-IPO contracts, please refer to Pre-Market Trading Product Rules.

2. IPO uncertainty: the underlying Pre-IPO company has not completed an IPO. The actual share count, valuation, and IPO timing are all uncertain. In extreme scenarios, the IPO may be cancelled or postponed, and OKX reserves the right to delist the contract and settle it at a fair value price, which shall be determined by OKX in its commercially reasonable discretion and may differ significantly from your entry price or expected IPO valuation.

3. Price does not imply IPO pricing: the contract price is set by market buyers and sellers and may not reflect the company's actual IPO offering price or post-listing stock price.

4. Rounding differences: during the rebase, prices and position quantities are aligned to the tick size and lot size; this may introduce minor rounding differences.

5. Short-term volatility: Pre-IPO contracts do not have a publicly listed stock as an external reference; short-term volatility may be significantly higher than for X-Perp on listed equities.

6. No equity ownership or economic claim: this contract does not constitute, and does not provide, any ownership interest in, or right to acquire, shares or any other security of the underlying company. You will not receive any shares at any point, including upon conversion to a standard equity futures contract. The contract is cash-settled exclusively in USD. The naming of the contract after a company does not imply any affiliation with, endorsement by, or economic link to that company.

7. Estimated share count accuracy: the estimated share count set by OKX before pre-listing regulatory filings (e.g. S-1 publication) is OKX's own assessment and may differ materially from the actual share count disclosed in the official filings. A significant difference will result in a large rebase ratio, changing your contract quantity and mark price substantially. OKX does not warrant the accuracy of its estimated share count.

8. Corporate actions may trigger an additional Rebase: If the underlying company undergoes a corporate action that changes its total share count — such as a stock split or reverse stock split — OKX may decide to perform an additional Rebase on the contract to align its pricing basis with the adjusted share count.

After the company completes its IPO, OKX will, at an appropriate time, convert the Pre-IPO contract to a standard Equity futures contract. A separate announcement will be published when the conversion is scheduled.