Listed companies may carry out stock splits or reverse stock splits as part of their corporate actions. Since TradFi Perpetual Contracts are CFD (Contract for Difference) products that track the price performance of underlying stocks, Bybit will automatically adjust the relevant contract parameters and positions when an underlying stock undergoes a stock split or reverse stock split. This ensures that the contracts continue to reflect the stock's adjusted price performance.
This article explains how Bybit adjusts TradFi Perpetual Contracts following stock splits and reverse stock splits. If you hold related Perp Options, see Stock Splits and Reverse Stock Splits for Perp Options for the impact on those positions.
Stock Split
A stock split increases the number of outstanding shares while reducing the price per share by the same ratio. For example, in a 10-for-1 stock split, each share held becomes 10 shares, and the price per share is adjusted to approximately one-tenth of the original price.
Reverse Stock Split
A reverse stock split reduces the number of outstanding shares while increasing the price per share by the same ratio. For example, in a 1-for-10 reverse stock split, every 10 shares held are consolidated into 1 share, and the price per share is adjusted to approximately 10 times the original price.
Adjustment Process for Stock Splits and Reverse Stock Splits
When the underlying stock undergoes a stock split or reverse stock split, Bybit will automatically adjust the corresponding TradFi Perpetual Contract. The adjustment process is as follows:
Phase 1: Announcement
Bybit will publish an announcement in advance (typically around 7 days before the adjustment) outlining the affected contracts, adjustment factor, trading suspension time, and expected resumption time. A banner notification will also be displayed on the affected trading pair's page.
Phase 2: Trading Suspension and Contract Adjustment
At the adjustment time specified in the announcement, trading for the affected pairs will be suspended to allow the system to complete the contract parameter and position adjustments. If additional time is required, Bybit will issue a separate announcement.
During the adjustment period:
- All open orders, Take Profit (TP) orders, and Stop Loss (SL) orders will be automatically canceled. This includes supported conditional and advanced strategy orders such as Split Orders, TWAP, and Iceberg Orders.
- A stock split or reverse stock split notification will be displayed on the trading page, along with a link to the relevant announcement for adjustment details.
- The system will temporarily freeze affected positions and complete the post-adjustment position conversion. During this period, you cannot open, close, or modify positions.
Phase 3: Trading Resumption
Trading for the affected pairs will automatically resume once all adjustments and system checks have been completed. A buffer period is reserved to verify the results, so the actual resumption time may vary depending on the progress of the adjustment.
After trading resumes:
- An adjustment completion banner will be displayed on the trading page, prompting users to review their adjusted positions.
- Position quantity, average entry price, and other relevant information will be updated based on the new contract parameters. The reopened position's average entry price is based on the adjusted mark price.
- Canceled orders can be viewed in your Order History. You may submit new orders as needed. Canceled orders will not be restored automatically.
Impact of Stock Split and Reverse Stock Split Adjustments
Order Handling
To ensure the system can complete the adjustment smoothly, all pending orders for the affected trading pairs will be automatically canceled at the start of the adjustment. This includes limit orders, conditional orders, TP/SL orders, and supported advanced orders such as Split Orders, TWAP, and Iceberg Orders.
Canceled orders can be viewed in your Order History. If needed, you may submit new orders based on the adjusted contract parameters. Filled orders and your trade history before the adjustment will not be changed.
Transaction Records
The system settles the existing position and reopens the eligible remaining quantity under the adjusted contract parameters. The following new records may appear in Transaction Log:
- For a Stock Split: The reopened adjusted remaining position record will be shown as Forward Split Reopen under the Trade filter.
- For a Reverse Stock Split: The reopened adjusted remaining position record will be shown as Reverse Split Reopen under the Trade filter.
- If no fractional position requires settlement, no corresponding Settle record will be generated.
Price Adjustment
After the stock split or reverse stock split is completed, the system will automatically adjust affected prices based on the adjustment factor and round them according to the applicable minimum price increment (tick size). The adjusted prices include the contract price, index price, and mark price.
Adjusted price = Pre-adjustment price ÷ Adjustment factor
Adjustment factor = Post-adjustment shares ÷ Pre-adjustment shares
The reopened position's average entry price is set using the adjusted mark price. It is not calculated by dividing the old average entry price by the adjustment factor.
Contract Parameter Adjustment
The system may adjust the tick size and minimum contract size (lot size) to standard precision tiers before settling positions. As a general calculation principle, the pre-adjustment tick size and lot size are divided by the adjustment factor, then aligned to an applicable precision tier. Whether either parameter changes depends on the adjustment ratio and the final specifications confirmed by Risk Management.
Position Adjustment
During the adjustment process, the system will temporarily freeze affected positions. The existing position is settled using the mark price at the trading suspension snapshot. The system then reopens the eligible remaining position using the adjusted mark price and updated contract specifications. Unrealized P&L on the old position becomes realized P&L. Unrealized P&L on the reopened position starts at zero.
Theoretical adjusted position size = Original position size × Adjustment factor
If the theoretical size is not a whole multiple of the updated minimum contract size, the system will settle the fractional portion that cannot be retained at the mark price from the suspension snapshot. The remaining eligible quantity will then be reopened. Excluding rounding and market movements, the position's value should remain broadly unchanged.
For positions under Isolated Margin, the margin you manually added to the old position will not carry over. The margin allocated to the reopened position is recalculated. Its margin level, risk indicators, and liquidation price may therefore differ. Please review the reopened position after trading resumes and add margin again if needed.
For the corresponding treatment of Perp Options positions, including strike prices and expiry, see Stock Splits and Reverse Stock Splits for Perp Options.
Liquidation Risk
To complete the adjustment, affected positions will be temporarily frozen and will not be liquidated solely because of the stock split or reverse stock split process. However, under Cross Margin or Portfolio Margin mode, liquidation of other positions in the account due to market volatility may reduce the account's available margin. After trading resumes, reopened positions may still face liquidation risk if account margin is insufficient.
Therefore, we recommend maintaining sufficient margin before, during, and after the adjustment, and monitoring your account balance and margin level regularly.
Other Impacts
Charts
After the adjustment, charts will be rescaled based on the adjusted prices. Pre-adjustment buy/sell markers and drawings will be removed to avoid displaying historical prices on the new price scale. Historical orders and trades remain available in your Order History and Trade History. New trades will display markers as usual. Chart prices and historical data may take up to 24 hours to synchronize, during which temporary display discrepancies may occur.
Trading Bots
If you are using Trading Bots for an affected contract, the system will adjust bot positions during the adjustment, but strategy parameters will not be updated automatically. We recommend pausing the bot before the adjustment and updating its settings before restarting it after trading resumes.
Copy Trading
If Copy Trading is enabled for an affected trading pair, Master Traders' and Followers' positions will be frozen and adjusted together. All unfilled orders will be canceled. After trading resumes, Copy Trading relationships will be retained, but canceled orders will not be restored automatically. New Copy Trading positions will synchronize when the Master Trader opens a new position.
Demo Trading
If the affected trading pair is also available in Demo Trading, the system will perform the corresponding adjustment in the demo environment, including contract parameters, positions, and order handling.
Examples
Example 1: Stock Split
User A holds a long position of 10 XYZUSDT contracts. The underlying stock undergoes a 1-for-2 stock split, giving an adjustment factor of 2.
Example 2: Reverse Stock Split
Assume that a user holds 10 XYZUSDT contracts and the pre-adjustment contract price is 100 USDT. If the product is an option, assume that its pre-adjustment strike price is 120 USDT.
Risk Disclaimer
- No ownership of the underlying stock: Holding a TradFi Perpetual Contract does not represent ownership of the underlying stock or grant shareholder rights, including dividends or voting rights.
- Corporate action risk: Stock splits and reverse stock splits may result in adjustments to contract parameters, positions, and orders, and may require fractional position settlements.
- Margin risk: After trading resumes, affected positions may face liquidation if your account does not maintain sufficient margin.
- Bybit reserves the right to adjust the processing timeline, adjustment methodology, and relevant contract parameters based on market conditions or corporate actions. In the event of any changes, please refer to the latest information published on Bybit's official website.