Corporate Actions

Policy Summary

OBSDN corporate-action policy for perpetual markets:

1. No adjustment for most corporate actions.
2. Splits and reverse splits are handled by market halt and forced position closeout.

Scope

This policy covers events such as:

• Splits and reverse splits
• Dividends
• Mergers and acquisitions
• Spin-offs
• Symbol/name changes
• Bankruptcy and extraordinary issuer events

Rule 1: No Adjustment for Most Actions

For most corporate actions, OBSDN does not automatically adjust:

• Position size
• Entry price
• Funding history
• Contract multiplier

Rule 2: Splits and Reverse Splits

For splits and reverse splits, OBSDN applies the following flow:

1. Publish event notice with affected market and UTC halt time.
2. At halt time, cancel all resting orders for the market.
3. Close all open positions at halt-time mark price.
4. Realize PnL from the forced close immediately.
5. Stop funding accrual at the halt timestamp.
6. Publish post-event status and relisting or delisting decision.

Halt-Time Mark Price Source

At halt, closeout price source is:

1. Primary: current mark price snapshot at halt timestamp
2. Fallback A: last valid mark price within prior 30 seconds
3. Fallback B: index price if mark price is unavailable

Worked Example A: 2-for-1 Split (Long)

Assume:

• Long size: 10 contracts
• Entry price: 100
• Halt-time mark price: 110

Forced-close PnL:

$$(110 - 100) \times 10 = +100$$

Result: position is closed at halt; +100 realized immediately.

Worked Example B: 1-for-2 Reverse Split (Short)

Assume:

• Short size: 8 contracts
• Entry price: 50
• Halt-time mark price: 55

Forced-close PnL:

$$(50 - 55) \times 8 = -40$$

Result: position is closed at halt; -40 realized immediately.

Related

• Market Lifecycle
• Mark Price
• Liquidations