As part of its ongoing commitment to enhancing user experience and optimizing margin efficiency, OKX will update the calculation method for the maximum transfer amount available to users operating under Portfolio Margin (PM) account mode. This adjustment takes effect at 10:00 PM on August 9, 2023, and introduces a significant improvement: net positive option value will now be recognized as eligible collateral, potentially increasing users’ transfer capacity from their trading accounts.
This strategic enhancement reflects OKX’s focus on delivering more flexible, capital-efficient trading solutions—particularly for advanced users who actively manage complex derivatives portfolios.
How Net Positive Option Value Supports Max Transfer Amounts
Currently, under PM account logic, long option positions with positive value are not factored into a user’s collateral pool when determining maximum transfer limits. This means that even if a trader holds valuable in-the-money (ITM) or near-the-money options, those assets do not contribute toward increasing their ability to transfer funds out of the trading account.
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Following the update, net positive option value will be included in the collateral calculation framework. In practical terms, this allows users to unlock greater transfer capacity based on the realizable value of their long options—provided certain risk-based adjustments are applied to maintain platform stability.
To ensure prudent risk management, the following three-tiered adjustment mechanism will be applied when incorporating long option values into max transfer calculations:
1. Liquidity Discount Coefficient
All long option positions will have their market value multiplied by a liquidity coefficient—a dynamic factor less than 1.0—that reflects the ease with which these instruments can be liquidated without significant slippage. Options with lower trading volume or wider bid-ask spreads will receive a higher discount, reflecting reduced liquidity confidence.
2. Delta-Based Discount for Out-of-the-Money (OTM) Options
The system applies an additional Delta-dependent discount coefficient to OTM options. Since these contracts have no intrinsic value and rely entirely on future price movement, their contribution to transferable equity must be carefully moderated.
- Deep ITM options (Delta close to ±1.0) face minimal Delta-based discounting.
- At-the-money (ATM) and OTM options (Delta between 0 and ±0.5) are subject to increasing discounts.
- Far OTM options may contribute little or nothing due to high uncertainty.
This ensures that only options with meaningful economic exposure are counted toward transfer limits.
3. Predefined Cap on Option Collateral Contribution
To prevent overreliance on volatile or speculative positions, each PM account is subject to a hard upper limit on the total net long option value that can be used in the max transfer calculation. This cap varies based on account size, risk profile, and market conditions but is designed to maintain balance between usability and systemic safety.
Temporary Suspension of Option Value Support During Market Stress
In exceptional circumstances—such as extreme volatility, flash crashes, or abnormal trading activity in the options market—OKX reserves the right to temporarily disable the feature that allows option values to support max transfer amounts.
During such periods:
- The option-based collateral component is excluded from transfer calculations.
- Users can still perform standard transfers based on cash, stablecoins, and other non-option collateral.
- Core PM metrics—including Adjusted Equity, In Use, and Cross Margin Ratio—remain unaffected and continue to function normally.
Once market conditions stabilize and key risk indicators return within acceptable thresholds, the option value support feature will be automatically reactivated across all eligible PM accounts.
This safeguard mechanism ensures platform resilience without disrupting core trading operations.
Frequently Asked Questions (FAQ)
Q: What is the "max transfer amount" in PM mode?
A: It refers to the maximum amount a user can transfer from their trading account to another account (e.g., funding wallet or withdrawal address) while maintaining required margin levels. It is derived from excess equity after accounting for open positions and potential losses.
Q: Which users are affected by this change?
A: Only users operating in Portfolio Margin (PM) mode will experience this updated calculation method. Those using Single-Currency Margin (SCM) or Multi-Currency Margin (MCM) modes are not impacted.
Q: Does this mean I can now transfer more than before?
A: Potentially, yes—if you hold long options with positive net value. Depending on liquidity, Delta, and the overall cap, your max transfer amount may increase post-adjustment.
Q: Will my existing positions be recalculated automatically?
A: Yes. The new rules apply automatically at 10:00 PM on August 9, 2023. No action is required from users—the system will handle all recalculations in real time.
Q: Can I still trade options normally during a suspension event?
A: Absolutely. Suspending the use of option value for transfers does not restrict your ability to open, close, or manage option positions. Trading functionality remains fully operational.
Q: Where can I check my updated max transfer amount?
A: You can view this information in the Assets section of your OKX account dashboard under PM mode. Look for “Max Transfer” next to your available balance.
Why This Update Matters for Traders
For sophisticated traders managing diversified portfolios, every percentage point of capital efficiency counts. By incorporating discounted net positive option value into transfer limits, OKX enables better utilization of existing holdings—without requiring liquidation.
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This change aligns with broader industry trends toward holistic risk modeling, where advanced platforms assess entire portfolios rather than isolated assets. It also supports traders during volatile markets, where holding valuable options might otherwise go underutilized due to rigid collateral frameworks.
Moreover, the inclusion of dynamic risk controls—like liquidity scaling, Delta weighting, and hard caps—ensures that increased flexibility does not come at the cost of platform security.
Final Notes and Risk Considerations
While this update enhances capital efficiency, it’s essential to remember that digital asset trading involves significant risk. Options and leveraged products are complex financial instruments suitable primarily for experienced traders who understand the potential for rapid losses.
OKX provides tools and features to help manage risk—but ultimately, each user is responsible for evaluating their own risk tolerance and investment strategy.
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Please note:
- The information provided here is for educational and informational purposes only.
- It does not constitute financial advice, investment recommendations, or a solicitation to trade.
- Market conditions can change rapidly; always conduct independent research before making trading decisions.
For further details about Portfolio Margin mechanics and this update, visit the official documentation: Max Transfer Amount with Option Value
For support inquiries, users are encouraged to reach out via the Support Center.
Last updated: August 9, 2023