Introduction to OKX Simple Earn and Its Rules

Publikováno dne 1. 3. 2023Aktualizováno dne 7. 5. 2024Doba čtení: 4 min

OKX Simple Earn is a value-added service that allows users to deposit their crypto assets to earn market-based interest on an hourly basis, and withdraw their assets at any time. The entire process is secured by our reliable risk management system so that users can earn profits while their assets are protected.

Use of assets

Crypto assets from Simple Earn users will be loaned to margin traders. Our Simple Earn service only supports listed crypto that can be used for margin trading.

Subscription and redemption

1. Subscription

Lenders can subscribe at any time. Following subscription, their crypto will be locked in Simple Earn to participate in interest rate bidding. Crypto will be lent to margin traders if a bid is successful.

2. Redemption

Lenders can redeem their crypto at any time. They will receive the redeemed crypto immediately. The crypto to be redeemed will not participate in the next round of interest rate bidding or generate interest for users for the current hour.

Rules for deposit limits

There is no deposit and redemption limit. OKX reserves the right to adjust the deposit and redemption limits based on the latest market developments and risks.

Interest rate setting and interest distribution

1. Interest rate setting

You can set your own minimum lending APR or allow the system to determine the most favorable rate for you. Simple Earn checks borrowing demand every hour and sorts lending bids by the minimum lending APR from the lowest to the highest until the total loan demand is satisfied. The highest accepted minimum lending APR will set the current market APR.

Simple Earn approves loans based on the following rules:

  • If your minimum lending APR is lower than the market APR, your funds will be loaned at the market APR.

  • If your minimum lending APR is equal to the market APR, your funds may either be partially loaned or not loaned at all.

  • If your minimum lending APR is higher than the market APR, your funds will not be loaned at all for that hour, and you will not receive any interest.

There is an exception to the foregoing rules: if the supply of all available lender's funds is almost fully loaned out, the market APR may be raised to attract more lenders. In such situations, notwithstanding that your minimum lending APR may have fallen below the new market APR, there is a possibility that your funds might not be loaned out, which could result in no interest earnings.

If the minimum APR of multiple lenders is equal to the market APR, loans will be approved on a first-come, first-served basis.

2. Interest calculation and distribution

For users whose lending offers are successfully matched on the hour T, the hourly interest for the corresponding loan amount from T to T+1 will be distributed on the hour T+1.

15% of the interest will be deposited as margin and 85% will be distributed to Simple earn users. Actual interest = Actual loan amount * Current APR/365/24 * 85%.

3. Source and use of margin

15% of the interest paid by margin traders will be deposited as margin to cover potential losses. OKX reserves the right to use the 15% interest for other purposes.

In the event that the margin cannot cover potential losses, a maximum of 50% of Simple Earn users' daily interest will be appropriated to cover the outstanding loss so as to ensure users receive interest every day. The rest of the outstanding loss will be temporarily covered by the platform and this amount will be gradually deducted from margin and daily interest in the future.

4. Minimum balance requirement for interest generation

1. Crypto price ≥ 1,000 USDT: 0.0001

2. 100 USDT≤ Crypto price < 1,000 USDT: 0.001

3. 10 USDT≤ Crypto price < 100 USDT: 0.01

4. 1 USDT≤ Crypto price < 10 USDT: 0.1

5. Crypto price < 1 USDT: 1

Crypto prices are updated at 4:00 PM UTC every day.