Question 1

Are there limits to how much I can pledge and borrow?

Accepted Answer

Your borrowing limit depends on your VIP status. Call our sales team to learn more.

Question 2

What can I do with my borrowed assets?

Accepted Answer

You can use borrowed funds on OKX to hold, trade, or get more crypto using Earn products. Alternatively, you can also move your crypto off of OKX and use it for anything you’d like.

Question 3

Can I use my collateral for anything else during my loan term?

Accepted Answer

All collateralized assets will be locked up and inaccessible. However, BETH will continue to earn staking rewards when pledged.

Question 4

How is interest calculated for my loan positions?

Accepted Answer

Flexible-term loans generate interest every hour. Hourly interest equals the sum of principal borrowed and interest accrued multiplied by current interest rate.

Hourly interest = (Principal borrowed + Interest accrued) × Current interest rate.

Question 5

How many types of crypto can I use as collateral?

Accepted Answer

We have more than 100 kinds of collateral and are constantly adding new ones to the list.

Question 6

How many types of crypto can I pledge at once?

Accepted Answer

You can borrow and pledge as many assets as you’d like as long as there’s no overlap between your loan and collateral crypto.

Question 7

Why does my liquidation LTV seem low?

Accepted Answer

If your liquidation LTV seems low, it may be because you’re using a crypto with a low discount rate as collateral. Cryptos with lower discount rates have lower liquidation LTVs.

Question 8

Will I still receive ETH staking rewards if I pledge BETH as collateral?

Accepted Answer

Yes, you will still receive ETH staking rewards if you use your BETH as collateral.

Question 9

What causes an auto-conversion risk?

Accepted Answer

When the collateralization of certain small-cap crypto exceeds the risk control limit on a platform level, we might be required to convert these tokens to USDT to keep risk control at a safe level.

Users may be encouraged to reduce their use of these crypto as collateral to avoid auto-conversion.

Question 10

How does repayment with collateral work?

Accepted Answer

When you repay your loan with collateral, USDT is used to convert your collateral to loan crypto. There are 3 potential scenarios:

If your collateral is USDT: Your collateral will be used to buy your loan crypto for repayment.

If your loan is USDT: Your collateral will be sold to buy USDT, which will be used to repay your loan.

If both your loan and collateral are non-USDT: Your collateral will first be sold to buy USDT, which will then be used to buy your loan crypto for repayment.

Question 11

What are some potential risks when repaying with collateral?

Accepted Answer

Converting collateral to loan crypto is affected by exchange rates, trade sizes, and gas fees, which may result in slippage.

If you repay your loan with a large amount of collateral, it may need to be converted in batches, which may result in greater slippage.

Due to market volatility, more USDT may be bought than needed for repayment. The excess will be returned to your funding account.

Borrow to trade,borrow to earn

Borrow to trade,
borrow to earn