1. Overview
1.1 The Institutional Loan Service ("Service") enables OKX users to receive peer-to-peer loans of Digital Assets on the OKX Platform for fixed terms. Provided by OKX ("we," "us"), this Service is governed by the terms herein.
1.2 By using the Service, you ("User") agree to this Agreement, which supersedes conflicting terms in other OKX policies. Unmodified definitions from the OKX Terms of Service remain applicable.
1.3 Key terms:
- Digital Assets: Cryptocurrencies or tokens available for loan.
- Collateral: Assets secured against loans (Section 4.2).
2. Eligibility Criteria
2.1 OKX approves Service access case-by-case. Eligibility requires:
- Compliance with OKX Terms of Service.
- Adequate risk tolerance for volatile Digital Assets.
- Legal ownership of assets in your OKX account.
2.2 Prohibited Uses:
- Illegal activities (money laundering, fraud).
- Market manipulation (Section 8).
2.3 Risks (Section 7.1):
- Price volatility may cause total loss.
- Technical issues could freeze asset access.
3. Risk Management
3.1 Controls include:
- Discount Rates: Adjustments based on asset liquidity.
- Risk Units: Account clusters for loan monitoring (details via OKX Platform).
3.2 OKX may force-liquidate positions if risks threaten platform stability.
4. Service Mechanics
4.1 Loan Process
- Order Submission: Specify asset type (e.g., USDT) and amount.
- Matching: Loans funded by lender liquidity; partial matches may occur.
- Drawdown: Automatic upon full match; partial draws require manual approval.
4.2 Collateral Requirements
- Initial Margin Ratio (IMR): 40% of loan value.
- Liquidation: Triggered if margin ratio falls below 15%.
4.3 Repayment
- Full Term Interest: Paid upfront.
- Overdue Interest: 30% APR if repayment delays exceed 14 days.
5. Termination
OKX may suspend/terminate access for:
- Violations of laws or OKX policies.
- Suspicious activity (e.g., unverified identity).
6. User Obligations
6.1 Warranties:
- Collateral is unencumbered.
- No sanctions list affiliations.
6.2 Indemnification: Cover OKX losses from breaches.
7. Limitation of Liability
7.1 No Guarantees: Service provided "as-is." Market risks borne by User.
7.2 Exclusions: OKX not liable for:
- Force majeure events (hacks, natural disasters).
- Third-party failures (e.g., telecom outages).
8. Dispute Resolution
8.1 Mediation: Mandatory via HKIAC (Hong Kong).
8.2 Arbitration: Binding if unresolved; seated in Hong Kong.
FAQ
Q1: What happens if my Collateral value drops?
A: OKX may request additional funds or liquidate assets to maintain margin ratios.
Q2: Can I repay loans early?
A: Yes, but Full Term Interest applies regardless of loan duration.
Q3: How are interest rates determined?
A: By market APR, visible during order placement.
👉 Learn more about Institutional Loans
👉 Risk management strategies
Updated: 24 June 2025