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What Is a “Reference Rate” in the Context of Cash-Settled Crypto Futures?

A standardized, aggregated price index from multiple spot exchanges used for final contract settlement.
Greeks.Live21.11.25

What Is a “Reference Rate” in the Context of Cash-Settled Crypto Futures?

A reference rate is a standardized, transparent, and regulated price index used to determine the final settlement value of a cash-settled crypto futures contract. It is typically calculated by aggregating and averaging the prices and trading volumes of the underlying cryptocurrency from multiple, approved spot exchanges.

This process ensures a fair and representative market price, reducing the risk of price manipulation on a single exchange.

What Is the Role of an ‘Index Price’ in the Settlement of Crypto Derivatives?
What Is the Primary Difference between Cash-Settled and Physically-Settled Crypto Futures?
How Does a Cash-Settled Futures Contract Differ from a Physically-Settled One in This Context?
How Is the Final Settlement Price for Cash-Settled Cryptocurrency Futures Determined?

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