VIP Loan

Date de publication : 25 nov. 2021Date de mise à jour : 6 févr. 2024Lecture de 8 min

OKX VIP loans service aims to provide large loan limits with low-interest exclusively for customers who're VIP5 or above on top of the existing margin loan service.

What is VIP loans

VIP loans provide VIP clients with an additional lending pool. In the past, client's liabilities were borrowed from the Savings pool (Market Borrow).

Assume the user has 1 BTC (where 1 BTC = 100 USDT), he/she will need 1 BTC as margin (collateral) to borrow 1,000 USDT to buy 10 BTC. After transaction is completed, user gets 11 BTC as asset and 1,000 USDT liability. Without VIP loans, the 1,000 USDT can only be borrowed from the Market Borrow.

However, there's a limit to Market Borrow. When Market Borrow limit remains 500 USDT (that could be the case the USDT in Savings pool has been borrowed by others, or occupied by user's other positions), even the user has enough margin he/she can only borrow 500 USDT to buy 5 BTC - unable to finish the 10x leverage trade. With VIP loans of 500 USDT, the additional borrow limit enables the user to finish that 10x leverage trade.

At the end, the user would still have 11 BTC as their asset and 1,000 USDT liability (500 USDT from Market Borrow and 500 USDT from VIP loans).

Please note that even the user has secured enough borrow limits, he/she won't be able to make the trade successfully without sufficient margin. If the margin left is 0.1 BTC and he/she borrowed 500 USDT from VIP loans, he/she can still only borrow 100 USDT for the trade. VIP loans don't provide extra equity, and will not impact the margin.

I. General information

  • Eligible Users: VIP5 or above
  • Eligible Account mode(s): Single-currency margin, Multi-currency margin, and Portfolio margin account under the Unified account (Please note that VIP loans must repay first before switching account modes).

II. VIP loans details

  1. VIP loans limit

The VIP loans limit is an independent limit in addition to the user's Market Borrow limit. Both the user's parent account and sub-account are eligible for the loan, but the borrow limit is shared.

For the specific limit, please refer to: VIP loans tiered limit.

  1. How it works

Users can borrow through two independent fund pools: the VIP loans pool and the Market Borrow Savings pool. When calculating the interest, our system will divide the loan into two fund pools to calculate liabilities and interest respectively according to the user's total loan amount, VIP loans amount, and Market Borrow loan amount (VIP loans fund pool will go first).

Example: User A has a total liability of 5,000 USDT in one of his sub-accounts:

Locked amount of VIP loans
VIP loans pool
Market Borrow Savings pool
0 (without the VIP loans)
0
5,000 USDT
10,000 USDT
5,000 USDT
0
4,000 USDT
4,000 USDT
1,000 USDT
As for positions, when an account:
  • Only have liability from Market Borrow: The interest calculation logic is consistent with margin interest rate,
  • Only have liability from VIP loans: The interest will be calculated based on the locked VIP loans amount, and all opening loans will no longer be charged,
  • Have liability from both VIP loans and Market Borrow:

1)In Multi-currency margin mode, the VIP loans locked limit will first deduct the liabilities in the isolated position (starting from positions that's first opened) and then deduct those in cross positions.

2)In Single-currency margin mode, the VIP loans lock limit will deduct position liabilities according to the order of opening positions (no further differentiation between cross positions and isolated positions).

If you adjust your positions to reduce the liability, the limit is released in an opposite way; Market Borrow Savings pool is first released and then the VIP loans pool.

Example:User A's account has 5,000 USDT liability : 4,000 USDT of VIP loans and 1,000 USDT of Market Borrow:

Total liability
VIP loans pool
Market Borrow Savings pool
5,000 USDT
4,000 USDT
1,000 USDT
4,500 USDT
4,000 USDT
500 USDT
3,500 USDT
3,500 USDT
0

Ⅲ. Interest

  1. VIP loans interest rate
For interest rates tiers, please refer to VIP loans tiered limit.

OKX will adjust the VIP loans interest rate according to the latest lending market trends, aiming to maintain a relatively lower interest rate.

After borrowing, the interest rate of the VIP loan order will remain unchanged within 30 days. During this period, even if the interest rate of the VIP loan increases, the interest will still be calculated according to the fixed interest rate of the order. After 30 days, the order will refresh at the rate of maturity and remain fixed for another 30 days.

  1. Interest calculation and deduction
Interest accrued from VIP loans is calculated and deducted from account balance on an hourly basis. It’ll take around 5 minutes to record accrued interest. Any borrowings that are incurred during this period will be recorded as well.

According to section II.2 above, the total liability will be allocated into the VIP loans pool and Market Borrow Savings pool, and interest is calculated separately according to respective interest rates.

Example:User A's account has 5,000 USDT liability:

Locked Amount of VIP loans
VIP loans pool
Market Borrow Savings pool
Calculation Details
10,000 USDT
10,000 USDT
0
All the loans are from the VIP loans pool. Total interest-bearing liability is 10,000 USDT and VIP loans interest rate is used for calculation.
4,000 USDT
4,000 USDT
1,000 USDT
Among the total interest-bearing liability of 5,000 USDT, 4,000 USDT is considered as VIP loans, and 1,000 USDT is considered as Market Borrow. Their respective interest rates are used for calculation.

If the client account doesn't have sufficient balance to pay the interest accrued on the VIP loans, OKX will reduce the VIP loans locked amount of the account. Any liability left exceeding the VIP loans limit will be transferred to Market Borrow. Market Borrow interest rate will be applied to the exceeded amount.

Ⅳ.Repayment

If the user wants to stop borrowing, he/she can choose to repay. This will release the VIP loans borrow limit previously locked by the user.

If the locked amount is less than the total loan amount of the current account after repayment, the excess will be converted into Market Borrow. Since Market Borrow has different interest rate levels and risk management rules, there will be validation to ensure user has sufficient assets when it's being transferred. If the validation fails, the user will not be able to make the repayment.

Example: User A locked 5,000 USDT in VIP loans and currently has 4,000 USDT liability, the table below shows what happens if User A repays different amounts of the VIP loans:

Repayment Amount
Locked amount of VIP loans after repayment
Interest-bearing liability
500 USDT
4,500 USDT
VIP loans: 4,500 USDT
2,000 USDT
3,000 USDT
VIP loans: 3,000 USDT
Market Borrow: 1,000 USDT

V. Risk Management

VIP loans is not included in the margin calculations. Under the current unified account risk management rules, VIP loans is not included as extra risk scenarios except the interest fee being deducted.

The interest of VIP loans is calculated and deducted from the trading account balance on an hourly basis. The trading account balance is subject to risk control according to the risk management rules of the unified account.

When borrowing occurs during margin trading, the system also performs risk control according to the risk management rules of the unified account (depends on account and position modes). Please refer to the Unified Account Risk Management Rules for details.

VI. Terms explanation

Term
Explanation
Borrow limit
Maximum amount can be borrowed, which is determined by the VIP level. This limit is shared among the master account and sub-accounts.
Borrowed
The locked amount that has been borrowed from both master account and sub account
Remaining limit
The remaining amount that can be borrowed
Remaining limit = Borrow limit - Borrowed
Day Rate
The interest rate
Current loan
All active VIP loan orders will be shown here
Repay action
Term
Explanation
Not repaid
Remaining borrowed amount that's subject to repayment

VII. Loan status enquiry

App & web users:
  • View the information under the "Current loan" section on VIP loans pop up or
  • Asset -> Order center -> Borrowing data
API users:

VIII. Start to use VIP Loan

Please check the VIP Loan FAQ for more details.