What's an OKX Flexible Loan?
What's an OKX Flexible Loan?
Cryptocurrency loans, often referred to as crypto-backed loans, involve borrowers using their digital assets as collateral to secure a loan. This concept allows users to access liquidity without the need to sell their cryptocurrencies, providing flexibility and preserving long-term investment strategies. OKX Loan is no different, as it allows users to increase cash flow without selling off their crypto.
How do OKX Flexible Loan works?
OKX simplifies the process of obtaining a crypto loan, making it accessible to a wide range of users. The platform acts as a bridge between lenders and borrowers, ensuring a secure and transparent lending environment. Users can navigate the loan process seamlessly through the OKX interface.
Loan application
Borrowers begin by submitting a loan application on the OKX platform. This involves specifying the desired loan amount and the cryptocurrency they are willing to use as collateral.
Collateralization
Once the application is submitted, we'll freeze the collateral in the borrower's account on OKX. The platform ensures the security of these assets throughout the lending period.
Loan disbursement
Loans are promptly disbursed to the borrower's account, providing quick access to the requested funds. The entire process is designed to be efficient and user-friendly.
What are the tokens that's available for loan?
OKX provides a diverse selection of over 150 cryptocurrencies on its platform, which users can utilize as collateral to secure loans. These tokens include but are not limited to Bitcoin (BTC), Ethereum (ETH), and an array of other prominent cryptocurrencies available on the OKX platform.
How do I apply for a Flexible Loan?
Go to the Loan page:
On the app: open your OKX App, go to Explore > Loan and select Borrow now
Select Borrow Now in the Loan page
On the web: log in to your account at okx.com and go to Grow > Loan
Select your preferred token and insert your preferred borrowed amount
Select your preferred single or multi-currencies as your collateral in the Collateral and Continue
Read through the order summary and select the checkbox to agree with the user agreement
Select Confirm to complete the request
You can visit here to learn more.
FAQ
1. Do I need to verify my account to use a flexible loan?
Yes, you're required to complete Identity verification to apply for a flexible loan.
2. What is my borrowing limit for flexible loans?
Your borrowing limit depends on your trading leverage level and OKX trading position tier level (2.5x leverage), whichever is lower. Taking USDT as an example,
OKX uses 2.5x leverage and the corresponding loanable maximum USDT is 23,000,000 USDT;
If your account's trading tier is level 1 and the maximum borrowing limit is 3,500,000 USDT;
Hence, you can only borrow a maximum of 3,500,000 USDT.
3. Why is my liquidation LTV low?
It is because you have chosen a token that has a lower discount rate to apply for a flexible loan.
4. Can I apply for another loan after I've applied previously?
Yes, you can apply for another loan for any currency except for those you've applied as collateral. However, please note that if your current LTV is higher than your initial LTV when you're applying for a second loan, you're required to top up your pledge amount to complete the borrowing.
5. Why is my second borrowing amount lower than the value of the additional pledge amount?
If your current LTV is higher than the initial LTV when you're applying for the second loan, our system will first add the additional pledge amount to the original pledge rate, and calculate the remaining amount as the available borrowing amount.
6. Why is the APR different hourly?
Our APR is calculated hourly. You'll see the previous hour's APR when you're borrowing, while your borrowing APR will be calculated on the next hour after you've applied.
7. Why can't I select the same currency for my collateral as my borrowing in the flexible loan?
These currencies are included as collateral and the borrowed currency and the pledge currency are mutually exclusive, hence you can't select these currencies as your pledge token and borrowing token.
8. Why does the force repayment happen in flexible loans?
Force repayment occurs when our platform's borrowing limit for a specific crypto has been exceeded. In such cases, our system will automatically sell the token you've used as collateral to repay the loan in borrowed tokens.
For example, if our platform's borrowing limit for OKB is 1,000,000, but the total amount borrowed by loan users reaches 1,500,000 OKB, and you've used BTC as collateral to borrow OKB, we'll sell your BTC to buy more OKB and settle your loan.
9. What are the rules of force repayment for flexible loans?
We'll sell the token with a lower conversion rate first followed by the token with a higher conversion rate. If the token conversation rate is the same, we'll sell the token with a higher value.
10. How do collaterals and borrowing calculated for flexible loans?
We're calculating based on the spot mark price.
11. Why is my pledge amount not released even though I've repaid my loan?
It is because the discount rate of the remaining token is small. Hence, it is not able to transfer out. However, you're allowed to reduce collateral several times in the loan details.
12. Can I still benefit from ETH2.0 staking after setting BETH as collateral in Loan?
Yes, you will still receive ETH2.0 rewards if BETH is your collateral in Loan.
13. How do I manage my flexible loan?
Easily adjust your loan and collateral amount at any time by going to the Order details page.
14. How do I repay my flexible loan?
Go to the Active Loans page and select repay. We support partial and full repayments.