1.1 These rules are formulated under a lawful, fair and transparent way to maintain reasonable control of the loan of the digital asset and margin trading, preserve an orderly market, and protect the legal rights of all investors.
1.2 The loan and margin trading stated in this document is the investment behavior which an investor provides collateral to OKEx ("We", "Us", "Our platform", "Our") to borrow assets for trading.
1.3 All loan and margin trading on OKEx.com shall comply with the rules stated in this document. Other activities not stated in this document shall comply with "OKEx Terms of Service" and other rules set on OKEx.com
2. Margin Trading
2.1 Investor shall agree to "OKEx Token Lending Service User Agreement" in advance of performing any related trading activities
2.2 Investor may place margin trading orders with us via OKEx.com to borrow/repay digital assets, including BTC and other tokens approved by us.
2.3 We provide information release, management and risk control services for token lending. However, there have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss. Investors shall carefully consider whether such an investment is suitable in light of their own financial position and investment objectives, and invest responsibly at their sole discretion.
3. Settlement and Delivery
3.1 The asset in the borrower's margin account on OKEx.com shall be deemed as the collateral.
3.2 Once the loan is successful, the borrowed asset will be delivered to the borrower's margin account on OKEx.com immediately. The borrower can perform margin trading with the borrowed asset forthwith.
3.3 Borrower shall pay the interest within the specified period promptly. Service fee applies based on the loan amount. Daily interest will be accrued, starting from the date of the loan (24 hours as 1 day. The loan period that less than 24 hours will also be counted as 1 day).
3.4 Borrower can repay the loan before the loan due date. Daily interest will be accrued accordingly. Time period less than 24 hours will also be counted as 1 day.
3.5 Interest will be compounded in the next phase if the repayment is not made before the loan due date. By using our margin trading service, the borrower acknowledges and accepts our company to perform related operations, and accepts the final consequences of the loan.
4. Risk Control
4.1 Only the asset in the margin account on OKEx.com will be deemed as the collateral. The asset in other accounts will not be deemed as collateral.
4.2 The total value of the investor's asset = the total value of the asset in the margin account of the trading pair on OKEx.com - the total value of interest
The liabilities of the investor = the total value of the asset borrowed in the margin account of the trading pair on OKEx.com
Liabilities-asset ratio = asset/liabilities
4.3 When the liabilities-asset ratio hits: 130%, an alert will be sent to the investor via the contact information provided to notify him/her the risk; 110%, the account will be force-liquidated to repay all the liabilities of the investor. If the investor has multiple loans, the loans will be repaid in chronological order. If all the investor's asset is not enough to repay the loan, the lender reserves the right to collect the debt.
4.4 Investors are advised to exercise caution, beware of investment risks, and adjust the margin level when necessary. The losses caused by forced-liquidation shall be borne by the investor solely.
4.5 We hold the right to manage the value of the borrowed tokens. When the total value of the borrowed tokens has exceeded the total loan amount limit which was formulated by us, we will cease the token loan services until the total value of the borrowed tokens drops below the limit.
4.6 We will adjust the total loan amount limit depending on the market's performances and our evaluation of potential risk.
4.7 If the borrower is unable to repay the interest with the asset in the margin account, the borrower has the liability to repay the debt with all the asset available on OKEx. However, if all the borrower's asset is still insufficient, the lender shall share the responsibility.
5. Trading Behavior
5.1 Investors shall comply with local regulations and law as well as the related rules of trading and margin trading of OKEx.com. We reserve the right to suspend or cancel any user's access to margin trading, take over the account, force-liquidate all positions or any related risk control measure when deemed necessary to maintain an orderly market.
6. Additional Terms
6.1 The terms not less than, within, not more than are all inclusive terms and the terms less than, beyond and over/below are exclusive terms. Daily interest will be accrued according
6.2 The terms are established by our company. This document or any further amendments are in effect immediately after make known through publication.
6.3 We reserve the right of interpretation of this document
6.4 The terms are implemented since Jan 30, 2018