VIP Loan

What’s VIP Loan?

VIP Loan is a product that offers high-limit loans with low interest rates, supplementing market loans, to VIP 5 users and above. Put differently, these liabilities were previously borrowed from the fund pool for market loans but are now accessed from a dedicated pool of funds.

Assume you have 1 BTC worth 100 USDT. If you wish to buy 10 BTC, you can use your 1 BTC as margin to borrow 1,000 USDT. After this trade, you’ll have 11 BTC, along with liability worth 1,000 USDT, which you could only borrow from market loans before VIP Loan was launched.

Let’s say market loans have a borrowing limit of 500 USDT, which could happen if the USDT in the fund pool has already been borrowed by other users or is tied up in positions. As such, even though you have sufficient margin, you can only borrow 500 USDT to buy 5 BTC, meaning you can’t complete your 10x leverage trade.

However, with VIP Loan, you can borrow the additional 500 USDT. You’ll have the intended 11 BTC, along with 1,000 USDT of liability (equally derived from market loans and VIP Loan).Note that even if you are within the borrowing limit, you can only complete trades with sufficient margin.

In other words, if your margin balance is 0.1 BTC after you borrow 500 USDT from VIP Loan, you can only borrow an additional 100 USDT. Amounts borrowed from VIP Loan don’t count as assets and therefore don’t affect your margin.

Overview

• Account tiers: VIP 5 and above

• Currencies: Refer to Interest rate and borrowing limit.

• Account modes: single-currency margin, multi-currency margin, and portfolio margin. Note that you must repay VIP Loan before switching account modes.

Details

Borrowing limits

The borrowing limits of VIP Loan are independent from the borrowing limits of market loans. You can use VIP Loan with your main account and sub-accounts, but the borrowing limits apply to and are shared between both types of accounts.For details, refer to Interest rate and borrowing limit.

How loans work

You can borrow from the VIP Loan pool or market loan pool, which are used separately to calculate liabilities and interest according to your total loan amount, VIP Loan amount, and market loan amount. The fund pool for VIP Loan takes priority.Assume you have a total liability of 5,000 USDT in your sub-account:

For positions in this sub-account:

• If you only have liabilities from market loans, interest calculations use the margin interest rate.

• If you only have liabilities from VIP Loan, interest calculations are based on the locked VIP Loan amount, and all loans used to open positions won’t accure more interest.

• If you have liabilities from both VIP Loan and market loans, then the following logic is applied:

  • In multi-currency margin mode, the locked VIP Loan amount is used first to deduct liabilities in isolated margin positions, starting from positions opened earlier, followed by liabilities in cross margin positions.

  • In single-currency margin mode, the locked VIP Loan amount is used first to deduct liabilities in positions opened earlier, without differentiating isolated margin positions from cross margin positions.

If you adjust your positions to reduce liabilities, the preceding sequence is reversed, meaning the market loan pool is used before the VIP Loan pool.Assume you have a total liability of 5,000 USDT — 4,000 USDT from VIP Loan and 1,000 USDT from market loans:

Interest

Interest rates

The interest rates of VIP Loan are adjusted according to the latest trends in the lending market, with the aim of keeping them relatively low. For details, refer to Interest rate and borrowing limit.

Interest calculation and deduction

Interest accrued from VIP Loan is calculated and deducted from your account balance on an hourly basis.As described in How loans work, your total liability is allocated into the VIP Loan pool and market loan pool, and interest is calculated separately using the respective interest rates.Assume your account has 5,000 USDT of liability:

If you don’t have sufficient balance to pay interest accured from VIP Loan, OKX will reduce the locked VIP Loan amount of your account. Any remaining liabilities that exceed your VIP Loan limit will be transferred to market loans, where the corresponding interest rates will be applied.

Repayment

To reduce interest, you can choose to repay your loans. This will release your locked VIP Loan amount.If your locked VIP Loan amount is less than the total loan amount of your current account after repayment, the excess is transferred to market loans. Since market loans have different interest rates and risk management rules, your account will be assessed for sufficient assets during the transfer. If the assessment fails, you won’t be able to make repayments.Assume you have a locked VIP Loan amount of 5,000 USDT and 4,000 USDT of liability:

Risk management

Amounts borrowed from VIP Loan aren’t included in margin calculations. Under current risk management rules for unified accounts, VIP Loan amounts aren’t viewed as additional risks, except when deducting interest.VIP Loan interest is calculated and deducted on an hourly basis from your trading account, which is subject to risk control based on the risk management rules for unified accounts.If you borrow during margin trading, risks are controlled using the risk management rules for unified accounts, based on your account mode and positions. For details, refer to the risk management rules for unified accounts.

Glossary

Repay action

Loan status

App and website users

• Find your loan status information under Current loan info on the VIP Loan page.

Or

• Go to My assets -> Order center -> Borrowing data.

API users

• Refer to the following documentation on how to retrieve historical data via API endpoints:

https://www.okx.com/docs-v5/en/#rest-api-account-get-borrow-and-repay-history-for-vip-loans

How to start using VIP Loan

Refer to VIP Loan FAQ for details.