The failure of the institution to deliver will constitute a breach of delivery, and the exchange will deal with the breach of contract through buying, auction, etc., and the defaulting member will bear the losses and expenses caused by it. The Exchange may also impose penalties on defaulting members, such as paying liquidated damages and compensation.
Generally speaking, taking Shanghai Futures Exchange as an example, if the delivery is in default, the defaulting party has to pay a penalty of 5% of the value of the defaulted contract.
Individual investors' positions in crude oil futures can be traded until the first 8 trading days of the last trading day of the contract delivery month 1 month, and they must close their positions and switch contracts before the closing of the trading day, otherwise the exchange will close its positions the next day.