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What if the seller of the physical futures contract has no spot at the time of delivery?
If the seller in delivery has no deliverable goods, so that the delivery cannot be completed, the exchange will impose a fine on the seller, usually 15-30% of the value of the delivered goods.

Moreover, in order to meet the delivery requirements of the buyer, the exchange will purchase the goods that meet the delivery standards at the market price and deliver them to the buyer, and the purchase difference (delivery price and market price) will be paid by the defaulting seller.

Before entering the delivery, the deposit is gradually increased. Usually when the last trading day comes, the deposit will be raised to 50%. If the margin is insufficient, it will be forced to close the position, so the seller's margin is enough to pay the fine of the exchange.