OKX has announced an important update regarding the discount rate tiers for various cryptocurrencies within its Cross Margin and Portfolio Margin modes. This adjustment is a proactive measure designed to mitigate market risk and enhance the platform's stability.
Scheduled for June 6, 2025, between 2:00 PM and 6:00 PM (UTC+8), this update will see changes to the collateral discount rates applied to specific digital assets. It is crucial to note that the maximum collateral amount per tier will remain unchanged; only the discount rates themselves are being modified.
Key Details of the Discount Rate Adjustment
The upcoming changes primarily affect how much borrowed value your collateral provides. A discount rate determines the percentage of an asset's value that can be used as collateral for trading. These adjustments are a standard part of risk management for trading platforms, helping to ensure stability during periods of high market volatility.
The table below outlines the specific adjustments for each listed cryptocurrency. The tiers represent different collateral quantity brackets, with the discount rate decreasing for each subsequent tier.
| Cryptocurrency | Tier | Old Discount Rate | New Discount Rate |
|---|---|---|---|
| BOME | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| EIGEN | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| ENS | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| ICP | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| IP | 1 | 0.85 | 0.80 |
| 2 | 0.79 | 0.70 | |
| 3 | 0.76 | 0.65 | |
| 4+ | Decrease 0.03 per tier | Decrease 0.05 per tier | |
| MOODENG | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| POL | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| SHIB | 1 | 0.90 | 0.85 |
| 2 | 0.88 | 0.82 | |
| 3 | 0.84 | 0.76 | |
| 4+ | Decrease 0.02 per tier | Decrease 0.03 per tier | |
| STETH | 1 | 0.950 | 0.90 |
| 2 | 0.945 | 0.89 | |
| 3 | 0.940 | 0.88 | |
| 4+ | Decrease 0.01 per tier | Decrease 0.02 per tier | |
| STRK | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier | |
| STX | 1 | 0.80 | 0.85 |
| 2 | 0.75 | 0.82 | |
| 3 | 0.65 | 0.76 | |
| 4+ | Decrease 0.05 per tier | Decrease 0.03 per tier |
Why Are Discount Rates Important for Traders?
Discount rates are a fundamental component of margin trading. They directly impact your buying power and risk level. A higher discount rate means your collateral is valued more highly, allowing you to borrow more against it. Conversely, a lower rate reduces your borrowing power.
These adjustments are typically made in response to an asset's volatility, liquidity, and overall market conditions. Assets deemed higher risk often have their discount rates lowered to protect both the trader and the platform from sudden market swings. For a deeper understanding of how these mechanics work in real-time, you can explore advanced margin trading strategies.
How This Adjustment Affects Your Portfolio
For most tokens listed (BOME, EIGEN, ENS, etc.), the discount rates are increasing across the first three tiers. This is generally favorable, as it means you can borrow more against each unit of collateral. However, for tokens like IP, the discount rate is being decreased, which will reduce your borrowing power for that specific asset.
The key takeaway is that your overall account's collateral value and thus your margin requirements and risk level may change. It is essential to review your positions to understand your new leverage ratios.
Proactive Risk Management for Users
OKX has issued a clear risk warning: this adjustment could increase the risk level of your existing positions. To prevent potential liquidations triggered by these new rules, users are strongly advised to take proactive steps.
Recommended actions include:
- Partially or fully closing positions to reduce exposure.
- Adding more collateral (margin) to your account to lower your effective leverage.
- Monitoring your account's health and margin ratio closely around the adjustment time.
The platform's primary goal is to prevent forced liquidations that could occur if a position's collateral value suddenly becomes insufficient under the new rates.
Potential for Schedule Changes
Please be aware that due to fluctuating market conditions, the adjustment timing for some cryptocurrencies might be subject to change or could be implemented later than initially planned. It is crucial to verify whether the adjustments for your held assets have been successfully applied after the maintenance window. 👉 Check the real-time status of your assets to confirm the update has been processed for your account.
Frequently Asked Questions
What is a discount rate in margin trading?
A discount rate, often called a collateral discount or haircut, is the percentage of an asset's total market value that can be used as collateral for borrowing. For example, a 0.85 discount rate means $100 of Bitcoin can be used to secure an $85 loan.
Why is OKX making these changes?
The changes are a risk management measure. By adjusting discount rates based on current market volatility and liquidity, the exchange aims to create a more stable trading environment and protect users from extreme market events that could lead to cascading liquidations.
Will my existing loans be automatically adjusted?
Yes, the new discount rates will automatically apply to all existing collateral in the affected margin modes. This will recalculate your account's total collateral value and could change your margin ratio and risk level.
What should I do before the adjustment?
Before the scheduled time, review your open margin positions. Calculate your current leverage and assess your risk tolerance. Consider reducing leverage by adding more collateral or closing out some positions to create a safety buffer.
How often does OKX update these rates?
Discount rate tiers are not updated on a fixed schedule. They are reviewed and adjusted periodically in response to shifting market dynamics, token performance, and overall risk assessments.
Where can I see the new rates after the update?
The updated discount rates will be reflected in the respective margin trading sections of the OKX platform. You can view the applicable rates for each asset before using it as collateral.
OKX remains committed to providing a secure, robust, and user-friendly trading experience. These updates are part of an ongoing effort to refine its products and services, ensuring they meet the highest standards of risk management and performance.