Interest Rates & Repayment
When you opt-in to margin trading, we create a new Margin account for you. This account has access to margin trading and all assets held in the account can act as collateral.
Borrowing collateral is simple and easy. The assets are delivered to your account immediately upon borrowing and you can trade with them how you like.
Interest rates on Okcoin are variable and change based on demand. The more demand there is for margin loans, the higher the interest rate. The exact rate is based on the amount of supplied assets for margin lending over the previous 24 hours.
The rates of each asset is divided into 6 tiers according to the proportion of the total margin lending amount and the total Savings deposit amount (B/L in the below table). See the table below.
Interest is charged against your margin loan every hour. You can gain a discount for your margin loan by being in a higher fee tier. There are 10 fee tiers based on the total amount of volume you have traded in the previous 30 day period. Higher fee tiers get access to increased borrowing limits and discounted interest rates.
You can find your fee tier, interest rate and max borrowing amount on Okcoin fees.
Every 24 hours the daily margin loan rates change. The rate is charged hourly according to a simple interest rate.. For example, if you borrow BTC at a daily rate of 0.0002, you will be assessed an hourly interest rate of 0.0002/24.
Every 60 minutes from the time of opening the loan is counted as 1 hour. If you pay off a loan before the end of the hour, it will still be counted as a full hour. Interest will continue to accrue for every hour afterward. You can pay off your loan anytime you want.
You must repay interest against the loan at least once every 7 days. You can pay before the end of the 7-day deadline, however the countdown will be reset immediately after repayment. If you don’t have enough interest to cover the loan repayment, we will close, cancel, or reset your order. We strongly recommend that you to repay the interest on time to avoid trades being closed or liquidated.
Each available margin asset at Okcoin sets its own basic borrowing amount that is shared by main and sub accounts. The higher your fee tier, the more you can borrow. Further information on basic borrowing amounts and how much you can borrow at each tier can be found on Okcoin fees.
Repayments are used to cover your earliest loan orders, and pay off interest before principal. Your repayment status will change to completed once all debts have been paid off, afterwards further interest will not be applied for the order.
In case of a new asset being generated from an event, such as an airdrop and a fork, margin borrowers of the affected asset must repay the bonus asset all together with their margin loans.
During the airdrop a snapshot is taken, the system will calculate the ratio of the unpaid amount of margin loan and airdrop amount so as to determine the amount of repayable bonus asset. During the snapshot, the affected margin accounts will be forbidden to transfer out the assets.
All unpaid airdrop assets will be counted as a liability when calculating your margin ratio. (The price of the bonus asset is determined by an index price based on the prices on major exchanges or other listed exchanges.) The asset will not be allowed to transfer out before repayment.
Risk control and the Margin trading insurance fund
In order to protect all of our traders, Okcoin has a set of risk controls and an insurance fund.
The only assets that are available for margin trading are those in your Margin account. Assets in other accounts are not counted as collateral.
The total value of your assets equals the total value of the asset in your Margin account of the trading pair on OKEx.com minus the total value of interest
Your liabilities equal the total value of the asset borrowed in the margin account of the trading pair on OKEx.com
Margin ratio is equal to (assets - liabilities) / liabilities
All margin positions have an alert price level and a liquidation price level. Both are determined by your maintenance margin ratio and fee tier.
Margin ratio of a fee tier’s alert price level equals the maintenance margin ratio of the tier plus 3%
When your margin ratio reaches the alert level, an alert will be sent to notify you of the risk to your account.
When your maintenance margin ratio drops below allowable levels, your positions will be fully or partially liquidated to repay the debts of the user. If you have multiple margin loans, the loans will be repaid in chronological order. If your assets cannot fully cover the loans, lenders have the right to collect a debt.
Tiered maintenance margin ratio system for margin trading
Trading with margin is risky. You are advised to exercise caution, be aware of investment risks, and adjust margin levels when necessary. Losses caused by a forced liquidation shall be borne by you solely.
Okcoin holds the right to manage the value of the borrowed crypto. When the total value of the borrowed crypto exceeds the total loan amount limit formulated by us, we will cease crypto loan services until the total value of the borrowed crypto drops below the limit.
We will adjust the total loan amount limit depending on the market's performances and our evaluation of potential risk.
After the positions are fully forced liquidated or partially forced liquidated by the system to repay the debt, a forced liquidation fee will be charged and added to the margin trading insurance fund, which is used to cover the margin call loss of bankruptcy positions.
(1) When a position is fully forced liquidated, the liquidation fee equal to the liquidation amount multiplied by the minimum initial margin rate of the user’s position * 10%. After the liquidation, if the remaining assets in the account are less than the liquidation fee, all the remaining assets will be fully charged as the liquidation fee;
(2) When a position is partial forced liquidation, the liquidation fee is equal to the partial liquidation amount multiplied by the minimum initial margin rate of the your position * 10%;
In case of margin call loss, the remaining balance less than a tick size will be allocated to the margin trading insurance fund as s liquidation fee.
Okcoin takes 15% of daily distributable interest as the platform's income. Currently, this income is added to the insurance fund for margin trading, which is used for compensating for any margin call loss. Okcoin reserves the right to determine the use of such income in the future. In case the margin trading insurance fund cannot cover a margin call loss, the daily distributable interest will be clawed back to cover the outstanding loss. Only a maximum of 50% of the daily interest income will be clawed back so as to ensure users receive interest income every day. The outstanding loss not covered by the clawback amount will be covered in advance by Okcoin and the amount will be set off against the insurance fund and daily distributable interest gradually in the future.
You shall comply with local regulations and law as well as the related rules of trading and margin trading of OKEx.com. We reserve the right to suspend or cancel your access to margin trading, take over your account, force liquidate all positions or any related risk control measure when deemed necessary to maintain an orderly market.
Margin trading terms and conditions
By opting in for margin trading, you agree to Okcoin’s Crypto Lending Service User Agreement in advance of performing any related trading activities.
Okcoin provides information release, management and risk control services for crypto lending. However, there have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss. You shall carefully consider whether such an investment is suitable in light of your own financial position and investment objectives, and invest responsibly at your sole discretion.