Welcome to the comprehensive guide on OKX’s Institutional Lending User Agreement. This document outlines the terms, conditions, and responsibilities associated with using OKX's institutional lending services. Whether you're a seasoned digital asset trader or exploring new financial tools, understanding this agreement is essential for risk management, compliance, and maximizing your experience.
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Overview
The Institutional Lending Service (the "Service") is provided by OKX ("we," "us," or "our") to users ("you" or "user") under the terms of this Institutional Lending User Agreement (this "Agreement"). The Service allows qualified users on the OKX platform to access peer-to-peer (C2C) digital asset lending on a periodic basis.
By using the Service, you confirm that you have read, understood, and agreed to all provisions of this Agreement, which becomes legally binding upon use. This Agreement incorporates by reference the full text of the OKX Terms of Service, forming an integral part of these terms.
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In the event of any conflict between this Agreement and the OKX Terms of Service, the provisions of this Agreement shall prevail. All other unmodified clauses from the OKX Terms of Service remain fully effective. Undefined terms in this Agreement carry the meanings assigned in the OKX Terms of Service.
Eligibility to Use the Service
Who Can Access Institutional Lending?
Access to the Service is limited to eligible users as determined solely by OKX at its discretion. To qualify, you must meet several critical requirements:
- You agree that OKX may hold your digital assets as collateral, which may be liquidated to repay debts incurred through the Service.
- You affirm compliance with the OKX Terms of Service and confirm eligibility to use its services.
- You possess sufficient knowledge, experience, and risk tolerance for trading non-principal-guaranteed digital assets.
- You are capable of conducting online operations securely.
- Your use of the Service does not violate laws in your jurisdiction, and you commit to legal compliance.
- You are the rightful and beneficial owner of all digital assets and fiat funds in your OKX account, with sources derived from lawful activities.
Prohibited Uses
You further agree not to use the Service for:
- Illegal purposes such as money laundering, terrorist financing, fraud, or any other activity prohibited under the OKX Terms of Service.
- Market manipulation, insider trading, price distortion, or any malicious conduct detrimental to market integrity.
Risk Acknowledgment
You understand and accept the risks associated with digital asset trading and lending, including but not limited to:
- High volatility that may result in partial or total loss within short timeframes.
- Technical disruptions that could temporarily block access to your assets.
- Market risks leading to asset depreciation.
- Potential changes to OKX’s policies or fees at any time, which may impact your position positively or negatively.
Risk Management Framework
OKX employs multiple mechanisms to manage systemic and individual risks across its platform. These include:
- Cross-Margin Account Rules: Enables shared margin pools across positions.
- Tiered Maintenance Margin Ratio Rules: Triggers automatic liquidation when equity falls below thresholds.
- Auto-Deleveraging Mechanism (ADL): Redistributes risk during extreme market events.
These systems are detailed in OKX’s official documentation and form a core component of this Agreement. OKX reserves the right to update or introduce additional risk controls at any time without prior notice.
Position Monitoring & Forced Liquidation
If your open orders or positions accumulate to levels deemed risky to other users, OKX may require you to cancel orders or partially/close positions entirely. We retain absolute discretion to execute partial or full liquidations without prior consultation.
Risk Unit Configuration
Before accessing institutional lending, you must designate one or more main and sub-accounts to form a risk unit cluster. This grouping helps isolate exposure and streamline collateral management. For full details, refer to the risk control policies linked above.
Using the Institutional Lending Service
4.1 Institutional Lending Process
(a) You can submit a request for institutional lending on the OKX platform specifying:
- The type of digital asset requested (e.g., USDT).
- The maximum loan amount desired.
Interest rates are displayed as an Annual Percentage Rate (APR), determined dynamically based on market conditions. You may set a maximum acceptable APR ("Highest APR"). If no limit is set, the current market APR applies.
Loan durations are published by OKX and visible at the time of request. As of now, only USDT is supported with a standard term of 90 days. OKX may adjust minimum/maximum loan sizes at its sole discretion.
(b) Large loan requests may be split into sub-orders. Matching depends on:
- Availability of lender liquidity.
- Compatibility between your order terms and available offers.
Partial or full mismatches are possible—your order may not be fulfilled entirely.
(c) Before approval, your account must hold enough funds to cover the full-term interest (Full Period Interest). This amount is recorded as a liability until funding occurs.
(d) When matched:
- Full Match: Automatic withdrawal occurs; funds are released.
- Partial Match: You may choose partial withdrawal, canceling unmatched portions.
- If market APR changes during partial matching, an APR-adjusted withdrawal applies.
Once matched, that portion cannot be canceled or modified—even if liquidity fluctuates before withdrawal. The loan term begins upon withdrawal (or when withdrawable), and interest accrues from that point. A 40% Initial Margin Ratio (IMR) is required at withdrawal.
Collateral Requirements
4.2 Collateral Management
Upon withdrawal, you must maintain digital assets or fiat equivalent to 40% IMR as collateral ("Collateral"). OKX has full authority to freeze, liquidate, or dispose of this collateral to secure repayment obligations.
You grant OKX a first-priority security interest over all assets in your account (including sub-accounts) to secure performance under this Agreement.
Monitoring & Margin Calls
OKX continuously monitors collateral value relative to loan value. If asset prices decline or borrowing costs rise, additional collateral may be required.
- If margin ratio drops to 30%, a margin call is triggered.
- At 15%, OKX may forcibly liquidate positions and dispose of collateral without further notice.
All losses from such actions are borne solely by you.
Ongoing Security Interest
You confirm that:
- Collateral is free from third-party liens except those created under this Agreement.
- You authorize OKX to hold collateral as continuing security for all present and future obligations ("Guaranteed Obligations").
- This security interest is irrevocable, supplemental to other guarantees, and unaffected by partial repayments.
You also appoint OKX as your irrevocable agent to act on your behalf regarding collateral matters—including signing documents, collecting payments, enforcing rights, and initiating legal proceedings when necessary.
Pricing & Repayment Terms
4.3 Price Determination
Digital asset prices and exchange rates are determined solely by OKX and published on the platform.
4.4 Repayment Rules
You must repay the full principal plus full-term interest before maturity.
- Late repayments incur late fees (currently 30% APR), accruing hourly.
- Failure to repay within 14 days post-maturity allows OKX to force-close positions to recover dues.
Early repayment is allowed:
- Repayments made 24+ hours before maturity: Full interest applies.
- Repayments made within 24 hours of maturity: Interest charged only up until the hour of repayment; remaining hours are waived.
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Loan Duration & Rollover Options
4.5 Loan Term
Loan terms are set by OKX and visible at order placement. The term starts from withdrawal date. Each sub-order may have a different start time. APR remains fixed during each term.
4.6 Rollover Process
Up to 7 days (168 hours) before maturity, you may initiate a rollover:
- OKX freezes an amount equal to full-term interest.
- An additional 14-day late fee buffer is frozen (“Overdue Deduction”).
- A new loan order is placed automatically.
If the new loan matches before or at maturity:
- Overdue deductions are unfrozen (no charge).
If matched within 14 days after maturity:
- Partial overdue fees apply based on delay duration.
Failure to match within 14 days results in cancellation of unmatched portions. OKX may then force liquidate holdings to settle outstanding balances.
No modifications are allowed once a new order is partially matched—even if underlying liquidity shifts pre-withdrawal.
Suspension, Cancellation & Termination
OKX reserves unilateral rights to suspend, cancel, or terminate your access to the Service at any time for reasons including:
- Incomplete or inaccurate identity/funds verification.
- Legal compliance (court orders, regulations, government directives).
- Submission of false, outdated, or incomplete information.
- Failure to respond to information requests satisfactorily.
Such actions do not require prior notice and may occur immediately based on risk assessment.
Representations & Warranties
You represent and warrant that:
- Collateral is legally sourced and free from disputes.
- No litigation, liens, freezes, or enforcement actions affect your ability to repay.
- You will not engage in activities that impair repayment capacity.
- You are not listed on any international sanctions lists.
- You will notify OKX promptly if changes in law invalidate any representation.
Violation of these warranties entitles OKX to suspend services and seek compensation for any resulting losses.
Limitation of Liability
7.1 Risk Disclosure
You acknowledge that:
- The Service is provided “as-is” and “as-available.”
- No warranties are made regarding accuracy, reliability, completeness, or uptime.
- Digital assets are highly volatile—losses can occur rapidly due to market swings.
- You assume all risks related to price fluctuations, locked assets, service termination, technical failures, or force majeure events.
- OKX may modify terms at any time; continued use implies acceptance.
You should independently assess risks based on your financial situation, investment goals, and risk tolerance. Consult independent legal or financial advisors if uncertain.
7.2 User Responsibility
You bear full responsibility for all transactions and account activities. OKX assumes no liability for gains or losses arising from your use of the platform.
7.3 Operational Risks
Delays in asset crediting depend on network conditions. OKX is not liable for timing discrepancies.
System outages due to maintenance, cyberattacks, infrastructure failure, natural disasters, or regulatory changes do not create liability for lost opportunities or indirect damages.
Software protocol changes (e.g., blockchain forks) are beyond OKX’s control—you must monitor such developments independently.
Prohibited Activities & Enforcement
OKX strictly prohibits unfair practices such as:
- Market manipulation
- Insider trading
- Fraudulent behavior
- Violations of law
We reserve the right to restrict, suspend, or close accounts involved in harmful activities. No liability is assumed for losses resulting from enforcement actions taken to preserve market health.
Indemnification
You agree to indemnify, defend, and hold harmless OKX and its affiliates, directors, employees, and partners against all claims, losses, fines, legal fees, and damages arising from:
- Your use of the Service.
- Breach of this Agreement.
- Illegal or negligent conduct related to your account.
This includes defense costs and settlements resulting from third-party actions linked to your activity.
General Provisions
Governing Law & Dispute Resolution
This Agreement is governed by the laws of England and Wales. Any dispute arising from this Agreement will follow a two-step process:
- Mediation: Initiated under HKIAC rules in Hong Kong.
- Arbitration: If unresolved within 90 days, binding arbitration will proceed with three arbitrators (one appointed by each party; third by HKIAC). Proceedings are in English and seated in Hong Kong.
Arbitral awards are final and enforceable globally.
Other key clauses:
- Amendments may be made unilaterally by OKX; continued use implies acceptance.
- No transfer of rights without written consent from OKX.
- Invalid clauses do not void the rest of the Agreement.
- Headings are for reference only.
- Final interpretation rests with OKX.
Frequently Asked Questions (FAQ)
Q: What happens if my collateral value drops suddenly?
A: If your margin ratio falls below 30%, you'll receive a margin call. If it reaches 15%, OKX may automatically liquidate your positions to cover liabilities.
Q: Can I repay my loan early?
A: Yes. If repaid more than 24 hours before maturity, full interest applies. If within 24 hours, only hourly interest up to repayment time is charged.
Q: Is rollover guaranteed?
A: No. Rollovers depend on available lender liquidity at the time. Unmatched portions may be canceled after 14 days past maturity.
Q: What assets can I borrow?
A: Currently, only USDT is available through institutional lending on OKX.
Q: Who owns my collateral during the loan term?
A: While you retain ownership, OKX holds a first-priority security interest and may liquidate it if required under this Agreement.
Q: How are interest rates determined?
A: Rates are dynamic and based on real-time market supply and demand for lending services on the platform.
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