OKX Margin Trading User Agreement

Published on Mar 2, 2023Updated on May 15, 202413 min read

Last Updated: 1 March 2023

1. Overview

1.1 OKX Margin Trading (the “Service”) is a Digital Asset (DA) derivative trading service launched by Aux Cayes Fintech Co. Ltd. (“OKX”). It is designed, managed, and operated by OKX. To enable OKX Margin Trading, you must fully read, understand and agree to this OKX Margin Trading User Agreement (the “Agreement”), as well as the Margin Trading Guide and the OKX Margin, Futures, Perpetual Swap Delisting Process Standards published by OKX from time to time. Please read through all the terms and conditions carefully, before choosing to accept this Agreement.

1.2 Please note that you shall not use the Service before agreeing to the terms of the Agreement. In particular, by accepting the Agreement directly or using the Service, you acknowledge that you have agreed to the terms of the Agreement.

1.3 This Agreement shall supplement our OKX Terms of Service. In the event of any conflict or inconsistency of any term or provision set forth in this Agreement and our OKX Terms of Service, such conflict or inconsistency shall be resolved by giving precedence first to this Agreement. All other provisions of our OKX Terms of Service not modified by this Agreement shall remain in full force and effect.

2. Eligibility of Using the Service

2.1 You acknowledge and agree that:

  • you have agreed to OKX Terms of Service, and you are eligible for and not prohibited from using the “Services” defined therein;

  • this Agreement does not contradict with the laws of the country or region where you are from; and

  • you are the legal owner of the DAs you have deposited with the Service and aforesaid DAs are obtained from legitimate sources.

2.2 You are aware of and assume the risks in using the Service, which include but not limited to:

  • high price volatility of the DAs and their derivatives could incur big or total loss in a short period time;

  • the insufficiency of DAs deposited as margin could incur immediate liquidation of your positions, and you could lose all DAs you have deposited with the Service;

  • technology outrage could happen, which may delay or block your use of the Service;

  • market anomaly could happen, which may incur loss of your Das; and

  • from time to time, in order to maintain the overall wellbeing of the market, OKX needs to add, remove, or change policies. Such action may be in favor or against an individual user like you.

2.3 You acknowledge and agree that:

  • You will not use the Service for any illegal purpose; and

  • You will not initiate or facilitate any form of price manipulation, insider dealing, market manipulation, market distortion or any other malicious wrongdoings to the market.

3. Using the Service

3.1 The Service provides you with real-time order book along with other information. You may view or download information for your own analysis.

OKX is not responsible for any judgment or analysis you made based on the information provided by the Service.

3.2 You may place orders, in the form required by OKX, via the website, client software, API or any other channels. Once an order is filled you will not be able to cancel or amend it.

3.3 Once your “Open Long” or “Open Short” order is filled, the corresponding position is opened. Once a “Close Long” or “Close Short” order is filled, the corresponding position is closed. The Service will provide you with information about your positions, and about the value of your DAs and their derivatives, on real-time basis.

3.4 The settlement of the margin and the interest rate calculation are defined and calculated by the Service at Margin Trading Guide.

3.5 You shall pay fee and/or interest to OKX for the Service. For detailed schedule, please refer to Margin Trading Guide.

3.6 OKX reserves its sole discretion and rights to suspend or terminate any use of the Service, or any services provided by OKX, or any OKX account, if there is a breach of any terms under this Agreement, or if there is situation happening under the OKX Margin, Futures, Perpetual Swap Delisting Process Standards. The relevant scenarios and consequences after such suspension or termination are set out in the OKX Margin, Futures, Perpetual Swap Delisting Process Standards.

4. Risk Management

4.1 The Service introduces various measures to control the systematic risks, including but not limited to:

OKX will continuously improve its risk-management measures.

4.2 “Margin System with Tiered Maintenance Margin Ratio”. Based on the DAs you have deposited with the Service, the size of the position you can open is limited. In addition, to avoid Liquidation, your Margin Ratio (defined and calculated by the Service, see Margin Trading Guide) needs to be kept higher than the Maintenance Margin Ratio, which is the lowest required Margin Ratio for you to maintain your current positions. A Tiered Maintenance Margin Ratio Schedule is adopted by the Service. The larger the position opened, the higher Maintenance Margin Ratio will be required. You may refer to the Margin Trading Guide for details.

4.3 “Forced partial-deleveraging”. When the Margin Ratio of your account is lower than 100%, it will trigger a forced partial deleveraging, and the reverse pending order of your position will be cancelled. Your account will be temporarily taken over by the Service’s Risk Management Engine; and will be back under your control after the liquidation process is done. In Liquidation Mechanism, the Service’s Risk Management Engine will keep liquidating your positions, until your Margin Ratio is back above your Tiered Maintenance Margin Ratio or your positions are fully liquidated. You may refer to the Margin Trading Guide for details.

4.4 “Auto-deleveraging”. Auto-deleveraging, abbreviated as ADL, refers to a mechanism for liquidation of counterparty positions to control the platform's overall risk when extreme market conditions or force majeure lead to insufficient insurance fund or rapid decline of the insurance fund. At present, the rapid decline means that the insurance fund has dropped by 30% from the peak within 8 hours, and the platform may adjust it according to market conditions in the future. After ADL is triggered, the platform will no longer use the method of placing orders on the market and waiting for a suitable price to liquidate or partially liquidate user's positions, but directly find the counterparty account with the highest ranking and trade with the mark price at the time. After the transaction is completed, the counterparty position will be closed. The profits from the position will be added to the account balance. You may refer to the Margin Trading Guide for details.

4.5 “Forced repayment”. In the multi-currency margin mode and portfolio margin mode, when the borrowing currency or the unrealized loss of the positions causes liabilities in the account equity of the currency, the borrowing currency or liability of the currency may trigger forced repayment, and the system will automatically buy back the liability currency and reduce the liability value. You may refer to the Margin Trading Guide for details.

4.6 If the size of your positions or open orders accumulate to a level which poses considerable threat to other users, OKX, under its discretion may request you to cancel your orders or close part of your positions. You acknowledge and agree that OKX reserves its sole and absolute right and discretion, under exceptional circumstances, to entirely or partially close your position or orders.

5. Limitation of Liability

5.1 You acknowledge that you understand the rules, standards and policies thoroughly relating to the services. OKX will not be liable for your loss due to misunderstanding of the rules and policies. In particular, to open or maintain your positions, the amount of DAs you deposited as margin will need to meet certain requirements. If the requirements are not met, Liquidation will be triggered. When a Liquidation happens, you could lose all the DAs you have deposited as margin.

5.2 The information of your trading becomes official at Settlement. The information shown between 2 consecutive Settlements are for reference purpose only and cannot be guaranteed to be implying the official outcome. You could take a loss by your actions based on the intro-settlement information provided. OKX will not be liable for your loss incurred.

5.3 To comply with the changes in laws or regulations, or to maintain the overall wellbeing of the market, OKX will need to, under its sole discretion, change policies, rules or implement emergency rules from time to time. Such changes or implementations could lead to temporary inaccessibility of your account, clawback from your account, immediate closure of your certain positions, or other interruption of the Service. OKX will not be liable for your loss incurred.

5.4 OKX will not be liable for any loss incurred by uncontrollable situations, which include but not limited to:

  • system maintenance as announced in advance;

  • internet device malfunctions which disabled data transfer;

  • war, riots, floods, earthquakes or any other unexpected disruptions;

  • hacking attacks, computer virus, internet network malfunctions, banking issues, website updating, service suspension, delay or cancellation due to the interruption of government;

  • unpredictable or unresolvable issues with the technologies currently available; and/or

  • caused by third parties including inappropriate or delated executions.

5.5 Network failures, system failures, hacking attacks, and other unforeseen factors have the potential to cause abnormal turnover, market interruptions and other possible anomalies. OKX reserves the right to cancel and/or roll back transactions over a period of time in which it deems sufficient to mitigate any detrimental market effects. OKX will not be liable for any loss incurred thereby.

5.6 You are aware that technology outrages can happen unexpectedly. OKX will not be liable for any loss incurred by technology outrages which include but not limited to:

  • loss, delay, interruption, or other malfunction of the connection to the Service;

  • stopping, slowness, no response, or other malfunction of the Service, due to overloading; and/or

  • malfunction due to the Service’s incapability to retrieve necessary data correctly from a third party through internet.

5.7 OKX strictly prohibits unfair trading behaviours. OKX reserves the right to enact, under its sole discretion, and take control over your account, if you

  • are involved in price manipulation, insider dealing, market manipulation, market distortion or any other malicious wrongdoings to the market;

  • might be harming other users or OKX by exploiting the Service’s vulnerabilities or by other unreasonable means; and/or

  • are involved in any other activities that OKX deems harmful to the overall well-being of the market.

5.8 OKX also reserves the right to take actions including but not limited to close your accounts, limit trading, halt trading, cancel transactions, rollback transactions and return the relevant digital assets to any complainant so as to eliminate any adverse effects to the overall wellbeing of the market. In no event shall OKX be liable to you for any loss incurred when such action against you happens.

6. Indemnification

6.1 You must indemnify OKX for all actions related to your OKX account and your use of the Service.

6.2 You hereby agree to defend, indemnify and hold OKX harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party against OKX due to or arising out of your breach of this Agreement, your improper use of the Service, your violation of any law or the rights of a third party and/or the actions or inactions of any third party to whom you grant permissions to use your OKX account or access our website, software, system (including any network and servers used to provide any of the Service) operated by us or on our behalf, or any of the Service on your behalf.

7. Miscellaneous

7.1 The content of this Agreement also includes OKX's various terms, policies, other agreements, standards or rules referred to this Agreement, Margin Trading Guide, OKX Margin, Futures, Perpetual Swap Delisting Process Standards and other relevant agreements, rules, policies and documentation regarding the Service and any other services provided by OKX from time to time. Once the above contents are officially released, it forms an integral part of this Agreement, and you should also abide by it. In the event of any conflict between any of the above contents and this Agreement, this Agreement shall prevail.

7.2 OKX reserves the right to unilaterally modify this Agreement (including the above contents) if necessary. Such modification could happen at any time without prior notice. In the event that any changes are made, the revised contents shall be posted on OKX's website immediately. Please check the latest information posted therein to inform yourself of any changes. Your continued use of or access to the Service following the posting of any changes constitutes acceptance of those changes. If you do not accept the revised content, you should stop using the related services.

7.3 You should read the Agreement, and any agreement or rules referred to in this Agreement very carefully. If there is anything that you do not understand in the Agreement and any document referred to herein, you should discuss this matter with OKX and seek the necessary clarification. Any formal communication with you will be undertaken through electronic mail unless otherwise instructed. Documents will be sent to you by electronic mail and you should seek to send any documents to us by the same means. Any formal communication with you will, unless otherwise agreed, be made in the English language.

7.4 In the event of any discrepancy between the English language version of the Agreement or any such communications and any translation of the Agreement or such communications (as applicable) in a foreign language, the respective English version shall prevail. In the event of any discrepancy between communications and the Agreement, the Agreement shall prevail.

7.5 The existence, validity, explanation, alteration, execution and dispute resolution of this user agreement shall be governed by the laws of Seychelles.

7.6 If there is any dispute between a user and OKX, both parties should try to work out a resolution through negotiations. However, if the negotiations fail, both parties shall agree to resolve the disagreement or dispute through the courts in the Seychelles.

7.7 All the headings in this Agreement are for convenience only and shall not affect its interpretation.