How Is a ‘Settlement Price’ Determined by a DON for a Futures Contract?

For a futures contract, the settlement price is the final, official price of the underlying asset used to determine the profit and loss at the contract's expiration. A DON determines this by aggregating data from multiple reliable sources, typically calculating a median or volume-weighted average of the asset's price across several major exchanges at a specific time.

This decentralized and aggregated approach prevents a single exchange's price anomaly from affecting the final settlement.