Dear valued customers,
To improve market risk management and your trading experience in our Futures Contracts, we're going to implement the following changes:
- Tiered Maintenance Margin Ratio System
- Grace Period Promotion
- Improved Fee Schedule
- Tiered Maintenance Margin Ratio System
To avoid cascade liquidation and minimizing the risk of clawback, we're going to launch the new Tiered Maintenance Margin Ratio System on Futures Trading in the second half of May 2019.
- Liquidation Modes
- About full liquidation: https://OKXsupport.zendesk.com/hc/en-us/articles/360028014352-Full-Liquidation
- About partial liquidation: https://OKXsupport.zendesk.com/hc/en-us/articles/360028014232-Tiered-Maintenance-Margin-Ratio-System-Partial-Liquidation
2. Advantages of the new Tiered Maintenance Margin Ratio System:
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Higher effective leverage:
- BTC: 1-100x
- EOS, ETH, LTC, BCH: 1-50x
- ETC, XRP: 1-30x
- BSV, TRX: 1-20x
-
Minimizing the Risks of Clawback
- Since the launch of the Tiered Maintenance Margin Ratio System on OKX Perpetual Swap Trading, NO clawback has occurred and the insurance fund is steadily increasing. We are confident that Futures Trading can also benefit from the same system to minimize the clawback risks.
3. Implementation
- For users' convenience, the following liquidation settings will be adopted after the risk management system upgrade:
- For the assets you have open positions / orders at the time of the upgrade, you may switch between full/partial liquidation modes;
- For the assets you have no open positions / orders at the time of the upgrade, you are limited to partial liquidation mode.
- We strongly recommend you to use the new Tiered Maintenance Margin Ratio System, since it will not only lower your positions’ risks, but also the market risks.
- We may adjust the clawback ratio in the future to maintain the impartiality of our market. A further announcement will be made for details and launch time.
4. Timeline
- May 20, 2019: Launch of TRON (TRX) futures contracts, which only supports the new Tiered Maintenance Margin Ratio System.
- May 22, 2019: Launch of the new Tiered Maintenance Margin Ratio System for BSV futures contracts. Existing active users will be able to switch between the new and old systems.
- Second half of May, 2019: Launch of the new Tiered Maintenance Margin Ratio System for XRP, ETC, LTC, BCH, ETH, EOS, and BTC futures contracts. Existing active users will be able to switch between the new and old systems.
- End of July, 2019: For the full liquidation mode, fees will be increase, and the max. number of contracts to open will decrease to encourage our users to use the new system.
- Grace Period Promotion
We will launch the Grace Period Promotion on June 11, 2019 to allow new futures trading user to perform trades at lower fees:
-
You can apply for the fees of a higher tier (1-2 tier) at our official website. Requirements are as follows:
- You must be tier 2 or higher on the fee schedule
- KYC level: level 3 for individual account, level 2 for institutional account
- Account balance requirement:
-
If you met the above requirements, you will be able to enjoy the trading fees of a higher tier at 17:00 (CET, UTC+1) on the next day after you applied. The new fees will be effective for 15 days. After 15 days,
- if your trading volume meets 50% of the higher tier, you can enjoy the higher tier fees for extra 15 days; after that, we will determine your new tier according to your trading volume in the past 30 days;
- if your trading volume does not meet 50% of the higher tier, then we will determine your new tier according to your trading volume in the past 30 days.
- If you are not able to match the trading volume requirement of the higher tier, you will not be able to apply for this promotion again in 3 months.
- Improved Fee Schedule
We will implement the new fee schedule at 17:00 June 11, 2019 (CET, UTC+1):
Thank you for your continued support and we assure you of our best services at all times.
Regards,
OKX
May 13, 2019
