OKX to adjust calculation method for max transfer amount for users in PM account mode

Published on Aug 9, 2023Updated on Apr 4, 20243 min read

In order to enhance users' experience, OKX will adjust the calculation method for the max transfer amount from trading accounts for users in PM mode at 10:00 PM on August 9, 2023. After the adjustment, net positive option value held by users will be used as collateral to support potentially larger max transfer amounts.

Postive Option Value supporting Max Transfer Amouts
Following the current product logic, net positive option values in PM accounts are not considered as collaterals. Therefore, long option holdings do not increase users' max transfer amounts from trading accounts.

After the adjustment, positive net option values are considered as eligible collaterals to support borrowing and hence increase Max Transfer amounts. For the purpose of risk control, however, the following adjustments are applied to values of long option positions in Max Transfer amount calculation:

  1. Discount due to liquidity: values of all long options are multiplied by a liquidity coefficient.
  2. Discount based on option Delta: a discount coefficient between 0 and 1 depending on Delta value is applied to the value of each OTM option.
  3. Upper limit: in each PM account, the total net long option value used to support transferring is capped at a pre-defined limit level.

Temporary Switching-off of the Option Value supporting Max Transfer Feature

The feature of option value supporting Max Transfer amount in PM accounts will be temporarily switched off for all PM users when the system detects abnormal market behaviours in option markets. In such cases, however, PM users can still perform normal transfer actions without considering option values. When the risk indicators turn back to normal, the feature of option value supporting max transfer is reactivated for all PM users.

Note that the potential pauses and reactivations of this feature as mentioned above only affect Max Transfer amounts. Adjusted Equity, In Use & Cross Margin Ratio of PM accounts are not affected.

Learn more: Max Transfer Amount with Option Value

Risk warning: The foregoing overview and information, some of which may be provided by third parties and not OKX, are for informational and educational purposes only. OKX does not guarantee the accuracy or completeness of any information contained herein and such information does not constitute any representation, warranty nor any financial, investment or other form of advice by OKX. Such information may not be suitable for all persons; it should not be relied upon in connection with a particular investor's trading; and, is not intended to be, nor should be construed as, an offer, recommendation or solicitation. Such information is also not intended for persons who reside in jurisdictions where providing such information would violate the laws or regulations of such jurisdiction. Digital assets are highly speculative and subject to high volatility, may become illiquid at any time, and that investors may lose the entire value of their investment. Before trading any digital asset, you should do your own research and evaluate your risk appetite. OKX is not responsible for any losses which you may incur from trading digital assets. Please refer to Terms of Service and Risk & Compliance Disclosure for more information.

For any inquiries regarding this adjustment, please feel free to contact us via the OKX Telegram group or the Support Center.

OKX team
August 9, 2023