A settlement price is a contract-defined reference used to calculate settlement obligations for a derivative. It may be determined from specified trading activity, an index or another published methodology, rather than simply copying the last trade.
Daily and final settlement
A daily settlement price can be used to calculate periodic gains and losses on open futures positions and the associated payment obligations. This does not necessarily close the positions.
A final settlement price is used at expiration or another contractually defined termination event. For a cash-settled contract, it helps determine the final payment instead of delivery of the underlying asset. The amount also depends on contract size, position direction and the product’s payoff formula. Linear and inverse contracts should not be calculated interchangeably.
Why other prices differ
The last traded price records a completed trade. A mark price is a valuation reference often used for unrealized profit and loss or risk controls. A settlement price serves the settlement process; it need not equal either of them.
The relevant observation window, source markets, rounding rules and fallback procedures are defined by the product. No single formula or time applies to every crypto derivative. A settlement value is not a promise that an order could have executed at that price.