In a move designed to enhance trading efficiency and reduce user costs, OKX has announced an upcoming adjustment to the discount rates applied to various cryptocurrencies under its cross-margin and portfolio margin modes. Scheduled for implementation on November 24, 2023, between 14:00 and 16:00 (UTC+8), this update reflects OKX’s ongoing commitment to improving liquidity and risk management across its platform.
The revised discount rate structure will impact how different digital assets are valued when used as collateral, directly influencing margin efficiency and capital utilization for traders. Below is a comprehensive breakdown of the updated framework.
Understanding Cryptocurrency Discount Rates
In cross-margin and portfolio margin models, users can leverage multiple cryptocurrencies as collateral within a unified position. However, due to differences in market liquidity, volatility, and systemic risk, not all assets are treated equally when converted into USD-equivalent value.
To account for these variances, OKX applies a discount rate—a multiplier that reduces the notional value of each asset when calculating usable margin. This mechanism protects both users and the platform from potential liquidation risks during periods of high volatility.
For example:
- A BTC holding worth $100,000 with a 97.5% discount rate contributes $97,500 toward margin requirements.
- A less liquid altcoin with a 50% discount rate only counts half its market value toward collateral.
This tiered approach ensures that more stable, high-liquidity assets receive favorable treatment while minimizing exposure to riskier tokens.
Updated Discount Rate Tiers
OKX has restructured its asset classification into five main tiers based on liquidity, trading volume, and market maturity. Each tier features graduated thresholds and corresponding discount rates.
Tier 1: High-Liquidity Blue-Chip Assets
Eligible Coins (Post-Adjustment): BTC, ETH, USDT, USDC
These foundational assets maintain the highest valuation due to their deep markets and stability.
| USD Value Tier | Discount Rate |
|---|---|
| $0 – $5,000,000 | 1.00 |
| $5M – $10M | 0.975 |
| $10M – $20M | 0.975 |
| $20M – $40M | 0.95 |
| $40M – $100M | 0.90 |
| >$100M | 0.00 |
👉 Discover how top-tier assets can maximize your margin efficiency on OKX.
Tier 2: Established Mid-Cap Tokens
Eligible Coins (Post-Adjustment): BETH, LTC, OKB
These include widely adopted mid-cap coins with consistent trading volumes.
| USD Value Tier | Discount Rate |
|---|---|
| $0 – $2M | 0.95 |
| $2M – $4M | 0.85 |
| $4M – $8M | 0.50 |
| >$8M | 0.00 |
Tier 3: Growing Ecosystem Tokens
Eligible Coins (Post-Adjustment): ADA, ATOM, AVAX, DOGE, DOT, FIL, LINK, MATIC, SHIB, SOL, XRP
This group includes rapidly evolving blockchain ecosystems with solid community support.
| USD Value Tier | Discount Rate |
|---|---|
| $0 – $1M | 0.90 |
| $1M – $2M | 0.80 |
| $2M – $4M | 0.50 |
| >$4M | 0.00 |
Tier 4: Emerging & Niche Market Assets
Eligible Coins (Post-Adjustment): AAVE, APT, ARB, EOS, GALA, NEAR, OP, TRX, UNI
These represent promising projects with growing traction but relatively lower liquidity.
| USD Value Tier | Discount Rate |
|---|---|
| $0 – $1M | 0.85 |
| $1M – $2M | 0.75 |
| $2M – $4M | 0.50 |
| >$4M | 0.00 |
Tier 5: High-Volatility & Long-Tail Cryptocurrencies
Eligible Coins (Post-Adjustment): Over 150+ tokens including PEPE, MEME, ORDI, WOO, ZRX, etc.
This tier includes speculative and micro-cap assets subject to sharp price swings.
| USD Value Tier | Discount Rate |
|---|---|
| $0 – $50K | 0.50 |
| >$50K | 0.00 |
All other unlisted tokens are assigned a zero discount rate, meaning they cannot be used as margin collateral.
Why This Change Matters
These adjustments align with global best practices in risk-adjusted asset valuation. By refining discount tiers:
- Traders gain clarity on which assets offer optimal margin utility.
- Risk exposure is better managed, especially during volatile market conditions.
- Capital efficiency improves for portfolios weighted toward high-quality collateral.
Additionally, the removal of certain underperforming or low-liquidity coins from eligible collateral lists encourages healthier trading behavior and reduces systemic vulnerabilities.
FAQ: Your Questions Answered
Q: What is a cryptocurrency discount rate?
A: It's the percentage applied to a digital asset’s market value when used as margin collateral. For example, a 90% discount rate means only 90% of the asset's value counts toward your margin balance.
Q: When will the new rates take effect?
A: The updated discount rates will go live between 14:00 and 16:00 UTC+8 on November 24, 2023. Any positions open at that time will be recalculated automatically.
Q: How do I know if my portfolio is affected?
A: If you hold altcoins outside the top two tiers—especially those with balances exceeding tier limits—you may see reduced collateral value post-adjustment. Review your holdings in the margin account settings.
Q: Can I still trade with unsupported coins?
A: Yes. While certain tokens no longer qualify as margin collateral, they remain tradable on spot and futures markets.
Q: Why are some popular meme coins capped at $50K?
A: Meme and low-float tokens often exhibit extreme volatility and shallow order books. The strict cap mitigates liquidation cascades and protects user equity.
👉 See real-time collateral valuations and optimize your portfolio ahead of updates.
Strategic Tips for Traders
To make the most of this update:
- Rebalance toward higher-tier assets like BTC, ETH, and stablecoins for improved margin efficiency.
- Monitor tier thresholds closely, especially if holding large amounts of mid-tier tokens like SOL or MATIC.
- Use OKX’s built-in risk calculator to simulate how changes affect your liquidation price.
- Avoid over-leveraging long-tail assets, even if they're currently profitable.
Final Thoughts
OKX continues to refine its risk infrastructure to support safer, more efficient trading environments. These discount rate adjustments are not punitive but rather proactive—designed to protect users while promoting sustainable growth across the digital asset ecosystem.
As always, investors should approach cryptocurrency trading with caution. Prices are highly volatile, and past performance does not guarantee future results. Conduct thorough research and assess your risk tolerance before making any financial decisions.
For full details on supported assets and margin rules, visit the official OKX help center.
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