# Dividend Payments (/docs/risex/trading/dividends)

import { Callout } from 'fumadocs-ui/components/callout';

Equity and ETF perpetual markets on RISEx (e.g. SPY/USDC, QQQ/USDC) track a real underlying security. When that underlying goes ex-dividend, RISEx applies a matching adjustment to the perp market so it stays economically aligned with actually holding the underlying.

***

<Callout type="warn">
  Around the dividend event, expect reduced liquidity, wider spreads, and sharper price moves on the affected market. Liquidations stay active, so manage your own risk accordingly - keep an eye on your margin and DO NOT assume normal market depth.
</Callout>

## How It Works

### Who Is Eligible

Any account holding an open position in the market at the exact moment the dividend is applied qualifies automatically - there is nothing to claim. Positions opened or closed before that moment are unaffected.

### Longs Receive, Shorts Pay

Same direction as funding: the long side is economically "long the dividend" the way a real shareholder would be, so longs are credited and shorts are debited.

### Amount

$$
\text{Dividend Payment} = D \times S
$$

* $D$: the dividend per share declared by the underlying's issuer
* $S$: signed position size (positive if long, negative if short)

The payment is settled in USDC, the market's collateral asset - not in additional units of the underlying.

## Trading Restrictions Around The Dividend

For a short window around the adjustment, RISEx briefly restricts orders that would open or increase exposure on the affected market:

| Order Type                               | Restricted?                    |
| ---------------------------------------- | ------------------------------ |
| GTC/GTT that opens or increases exposure | Yes                            |
| GTC/GTT marked reduce-only               | No - closing is always allowed |
| IOC/FOK                                  | No                             |

This keeps traders from opening new risk against a price that is about to make a large, known jump. Existing positions and closing orders are never affected, and the restriction lifts within about 1 to 5 minutes after the dividend is applied. At the moment the dividend is applied, fills are also briefly frozen entirely (postOnly) - resting orders stay live and cancelable, but nothing executes until the freeze lifts.

## Timeline (US Equity Perps)

Every dividend event on a US Equity Perp market follows the same relative timeline, anchored to 20:00 ET on the day before the underlying's ex-date:

| When                                    | ET            | UTC (EDT, UTC-4)        | What Happens                                                                                                                                        |
| --------------------------------------- | ------------- | ----------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| Ex-date minus 1 day, \~30 min before    | 19:30         | 23:30                   | Order restriction begins (see above)                                                                                                                |
| Ex-date minus 1 day                     | 20:00         | 00:00 (ex-date)         | Dividend is applied: accounts holding a position at this instant are credited/debited. All fills are also briefly frozen (postOnly) at this instant |
| Ex-date minus 1 day, \~1 to 5 min after | \~20:01-20:05 | \~00:01-00:05 (ex-date) | Order restriction and the fill freeze lift, normal trading resumes                                                                                  |

If the event falls during EST (UTC-5) instead of EDT, shift the UTC column forward by 1 hour. This mirrors when the underlying itself goes ex-dividend, so RISEx's mark price stays aligned with the real security throughout.

***

## FAQ

### Who Is Eligible For The Dividend?

Whoever holds an open position in the market at the exact moment the dividend is applied. It does not matter when the position was opened, only that it is still open at that instant.

### Do Longs Receive And Shorts Pay?

Yes. Longs are credited $D$ per unit of position size, shorts are debited the same amount.

### How Much Do I Actually Receive Or Pay?

$D$ (the real per-share dividend declared for the underlying) multiplied by your position size. One unit of position size receives/pays exactly $D$ in USDC - you do not receive more units of the underlying.

### Does The Mark Price Drop By The Dividend At The Same Time?

It depends on the oracle feed's pricing. Generally you should expect the mark price to move down around the dividend, similar to the underlying trading ex-dividend, but the exact size of the move is not guaranteed - it depends on market volatility and behavior at that moment too.

### What If I Open Or Close My Position Right Around The Dividend Time?

You need to hold the position at the exact moment the dividend is applied to receive or pay it. Closing right before means you miss it entirely (as a long) or avoid paying it (as a short); opening right after means you also do not get it. Note that opening new exposure is also restricted for a short window right around the event - see [Trading Restrictions](#trading-restrictions-around-the-dividend) above.

### Does This Happen For Every Equity/ETF Market?

Yes - any equity or ETF perp market on RISEx applies this adjustment whenever its underlying goes ex-dividend.