Gate.io Equity-Linked Perps See 92 Liquidations After Dividend Adjustment

Gate.io's equity-linked perpetual futures contracts are designed to mirror corporate actions in traditional equities, including dividend payouts. On September 30, the exchange settled a quarterly dividend adjustment for its BENUSDT contract, which tracks Franklin Resources (NYSE: BEN). The settlement triggered 92 liquidations on the platform.

The dividend payout of $0.33 per share was credited to net long positions and deducted from net short holders via a funding-fee mechanism. Traders who didn't top up their margin were force-closed in minutes, highlighting the importance of monitoring dividend calendars for equity-linked perpetuals.

The BENUSDT contract was trading near $0.000585 at the time of the adjustment, making the $0.33 credit an enormous ratio compared to the notional value of the contract itself. This disparity contributed to the high number of liquidations, as short holders faced a deduction that could swallow their entire margin and then some.

Gate.io had flagged the risk two days earlier, issuing a warning on September 28 for short holders to ensure they had enough margin to absorb the upcoming deduction. The exchange has conducted similar equity-perpetual dividend adjustments for other tickers throughout September, but none of those settlements generated the same level of liquidation activity.