UA FAQ

Published on 11 Jun 2021Updated on 29 Aug 20247 min read

Contents

1. How does auto-borrow feature work with Unified account?

2. When does OKX calculate and deduct the interests?

3. How are the interests deducted in Unified account?

4. How is the repayment done in Unified account?

5. How can I get the interest-free range for my liability?

6. Why my borrowable amount doesn’t change when I have even more margin?

7. How can I arbitrage via Unified account?

8. How can I arbitrage the funding fee via Unified account?

9. In which case will the discount rate be counted in account margin calculation?

10. Will OKX close down to maintain a particular instrument with Unified account?

11. What is the auto deleveraging mechanism(ADL) for the positions with returns?

12. How is Derivatives risk offset carried out in the Portfolio margin account?

13. How is Spot-derivatives-risk offset carried out in the Portfolio margin account?

1. How does auto-borrow feature work with Unified account?

(1）Unified account only supports auto-borrow mode. Manual-borrow is unavailable.

(2）In isolated margin mode and spot and futures cross margin mode，auto-borrow will be executed when opening a position, and auto-repayment will be executed when closing a position.

(3）In multi-currency margin mode with the auto-borrow feature enabled, if the trading amount is more than the account balance, the insufficient part will be covered by the auto-borrowed funds.

2. When does OKX calculate and deduct the interests?

(1) The current interest calculation is performed once every hour on the hour, and the interest calculation will not affect the account balance and position balance;

(2) Interest is deducted every hour

3. How are the interests deducted in Unified account?

(1) For the position in isolated margin and spot and futures cross margin mode, the interests will be deducted from the position’s liability, causing the liability amount to increase after deduction.

(2) For the multi-currency liability, the interests will be deducted from the liability balance, causing the account’s liability amount to increase after deduction.

4. How is the repayment done in Unified account?

(1)For the position in isolated margin and spot and futures cross margin mode, repayment only can be made via closing the position. When the user closes the position, the user needs to repay the interest first, then repay the liability.

(2) For the multi-currency liability, the user can transfer or purchase the liability currency to make the repayment.

5.How can I get the interest-free range for my liability?

(1) Only the liability caused by the unrealized profit and loss generated from a contract position can have an interest-free range.

(2) The liability caused by using leverages in spot market or the realized profit and loss generated from a contract position doesn’t have an interest--free range. For more information, refer to https://www.okx.com/help/vi-interest-calculation

6. Why my borrowable amount doesn’t change when I have even more margin?

(1) You can try lowering the leverage. The lower the leverage, the more amount you can borrow.

(2) If lowering the leverage doesn’t work. That means your borrow amount may reach the limit. In this case, you can upgrade your account level to enjoy a higher borrow limit. Please refer to https://www.OKX.com/fees

(3) If neither (1) nor (2) is your case, you may not able to borrow cryptos as too many users are borrowing cryptos at this time. You can try again later.

7. How can I arbitrage via Unified account?

(1) If the premium is positive (i.e., futures price higher than spot price), you can open a long margin position and a short futures position with the same size and close the positions at a premium to get arbitrage returns. (2)If the premium is negative (i.e., futures price lower than spot price), you can open a short margin position and a long futures position with the same size and close the positions at a premium to get arbitrage returns. (3)With Unified account, the profit and loss of all positions can offset each other, significantly reducing the risk of liquidation.

8. How can I arbitrage the funding fee via Unified account?

(1) If the perpetual funding fee is positive (i.e., perpetual price higher than spot price), you can open a long margin position and a short perpetual position with the same size. Then close the positions to get arbitrage returns when the funding fee decreases or becomes negative.

(2) If the perpetual funding fee is negative (i.e., perpetual price lower than spot price), you can open a short margin position and a long perpetual position with the same size. Then close the positions to get arbitrage returns when the funding fee decreases or becomes positive.

(3)With Unified account, the profit and loss of all positions can offset each other, significantly reducing the risk of liquidation.

9. In which case will the discount rate be counted in account margin calculation?

(1) In multi-currency margin mode, tokens are set with the discount rate with different tiers. For more information, refer to https://www.OKX.com/trade-market/discountrate

(2) There is no discount rate in spot and futures margin mode, as the risk control measures are taken based on a single currency.

10. Will OKX close down to maintain a particular instrument with Unified account? No. With Unified account, all instruments are related and will be maintained together.

11. What is the auto deleveraging mechanism(ADL) for the positions with returns? Auto deleveraging will be executed in the order of account and position risk degree and P&L ratio. For more information, please refer to https://www.okx.com/help/iv-introduction-to-auto-deleveraging-adl

12. How is Derivatives risk offset carried out in the Portfolio margin account?

Portfolio margin account conducts stress tests under various risk scenarios for derivatives: futures, perpetual swaps and options. Account margin is then set at maximum loss value. If the risks of different positions can compensate each other, margin is then deducted accordingly. Risk scenarios don’t include spot and margin positions. If position values are too low, margin under Unified account can also be lower.

The following examples show typical position margin cases under portfolio margin account. Actual margin may be different due to market volatility:

(1) Futures calendar spread arbitrage: BTCUSD quarterly futures +480,000 contracts. BTCUSD weekly futures +480,000 contracts. Unified account maintenance margin = 23,000,000 USD. Portfolio margin account maintenance margin = 4,000,000 USD.

(2) Unilateral long futures positions: BTCUSDT quarterly futures +1,000 contracts. Unified account maintenance margin = 0.2 BTC. Portfolio margin account maintenance margin = 1.6 BTC.

(3) Unilateral short options positions: BTCUSD weekly options -10,000 contracts. Unified account maintenance margin = 4,600,000 USD. Portfolio margin account maintenance margin = 650,000 USD. (4) Intertemporal covered call portfolio of futures and options: Sell 678 contracts of BTCUSD bi-weekly call options at 70,000 USD and buy 13,000 contracts of BTCUSD quarterly futures. Unified account maintenance margin = 560,000 USD. Portfolio margin account maintenance margin = 200,000 USD.

13. How is Spot-derivatives risk offset carried out in the Portfolio margin account?

Portfolio margin account conducts stress tests under various risk scenarios for derivatives: spots, margins, futures, perpetual swaps and options. Account margin is then set at maximum loss value (Including spots & margins). According to "Derivatives type"-users can put spots&margins into USDT-risk unit/Crypto risk unit. If position values are too low, margin under Unified account can also be lower.