Introduction to the platform’s collateralized borrowing limit mechanism
The platform’s collateralized borrowing limit
To manage overall platform risk, OKX may impose an automatic platform-wide collateralized borrowing limit for each collateral cryptocurrency across trading accounts. This platform’s collateralized borrowing limit (“collateral limit”) will consider, among other factors, the asset’s liquidity, trading depth, total platform volume, and borrowing volume.
The following trading and transfer activities won’t incur borrowing, which means they’re unaffected by the collateral limit:
Spot mode (auto-borrow off): trading of all instruments, transfer in, transfer out
Futures mode: spot, expiry futures, perpetual futures, options trading, transfer in, transfer out
Advanced mode (multi-currency margin mode and portfolio margin mode): spot trading, transfer in
Trading restrictions when the collateral limit is reached
The following trading activities will be affected when the collateralized borrowing on a crypto reaches the collateral limit:
Spot mode (auto-borrow on):
The collateral crypto won’t be included in the account’s available margin. It’ll no longer be used as margin when borrowing.
The collateral crypto is included in the account’s adjusted equity. This crypto doesn’t impact your account’s margin ratio, and your positions won’t be liquidated as a result of this limit.
Margin trading in futures mode (cross-margin and isolated margin modes):
You can’t open positions with margin trading pairs that include the collateral crypto.
Existing positions and their floating profit and loss (PnL) are unaffected, and the margin ratio is calculated as usual. Additionally, you can only close your positions using reduce-only orders.
Trading in advanced mode (multi-currency and portfolio margin modes):
When trading spot margin, expiry futures, perpetual futures, and options (cross-margin and isolated margin), the collateral crypto won’t be included in the account’s available margin. This means that the collateral crypto won’t provide margin for borrowing or opening new positions.
When trading margin pairs in isolated mode, you can’t open new positions on margin trading pairs with the collateral crypto. Other trading pairs and existing positions are unaffected, with floating PnL and the margin ratio calculated as usual. Additionally, you can only close your positions using reduce-only orders.
The collateral crypto is included in the account’s adjusted equity and doesn’t impact your account’s margin ratio. Your positions won’t be liquidated as a result of this limit.
Transfer restrictions when the collateral limit is reached
The following transfer activities will be affected when the collateralized borrowing on a crypto reaches the collateral limit:
Spot mode (auto-borrow on): When transferring, the collateral crypto won’t be included in the account’s available margin. As a result of decreased available margin, the amount you can transfer may be lower.
Advanced mode (multi-currency and portfolio margin modes): When transferring, the collateral crypto won’t be included in the account’s available margin. As a result of decreased available margin, the amount you can transfer may be lower.