A Stock Adjustment on a Crypto Index
The exchange’s announcement identified BENUSDT’s underlying asset as Franklin Resources. But Gate’s public index-composition endpoint showed the contract drawing prices from BEN trading pairs on MEXC and Uniswap V3, rather than a stock-market price feed.
Gate’s contract specification API listed a multiplier of 100. Applying the announcement’s formula—net contract quantity multiplied by the contract multiplier and the per-share dividend—would therefore produce a 33 $USDT adjustment for each net contract. That is the formula’s implied payment, not a verified amount ultimately retained by traders.
The mechanism explains why the adjustment threatened short positions even without a comparable market-price move. Gate said the dividend would be processed as an additional funding payment, separate from ordinary funding, and warned that deductions could leave shorts with insufficient margin and trigger liquidation.
Its dividend rules describe these payments as contract-level adjustments intended to reflect an underlying asset going ex-dividend. They do not confer ownership of shares or direct dividend rights.
The liquidation feed establishes that orders were recorded immediately after the scheduled settlement, but it does not identify individual account balances or establish final customer losses. The amount ultimately credited, withdrawn or reversed remains unclear.
The two manager accounts described the recovery as restoration of balance displays, without setting out a clawback policy or a compensation timetable. They directed users with outstanding problems to customer service.
The bigger picture
Why Gate’s Funding Rate Is Not the Whole Cash-Flow Picture
Monitoring the ordinary funding rate alone does not capture all cash-flow exposure in Gate’s stock and ETF perpetuals. Its regular funding formula has upper and lower limits, while its dividend mechanism uses a separate per-unit adjustment and does not change that regular rate.
The distinction also puts corporate-action implementation inside the exchange’s rulebook. Issuer disclosures inform Gate’s decision but do not themselves determine the contract payment; Gate may change or cancel settlement when distributions change or data anomalies arise. For these derivatives, corporate-action announcements are part of the cash-flow specification, not merely background issuer news.
