When trading on leveraged markets, understanding how margin modes work is crucial to managing risk and optimizing returns. On OKX, one of the leading cryptocurrency derivatives platforms, traders can choose between two primary margin modes: full margin (cross) and isolated margin. Each comes with distinct rules around liabilities, interest accrual, and fee-free thresholds—especially in multi-currency environments.
This guide breaks down the mechanics of debt generation, interest calculation, and the unique advantages of the cross-margin mode with multi-currency support, particularly focusing on how OKX handles interest-free exposure within certain limits.
How Debt and Interest Work in Full and Isolated Margin Modes
In both full (cross) margin and isolated margin modes, if your position incurs a loss that exceeds your available balance, you may generate a liability—essentially a negative balance that represents borrowed funds.
When such liabilities occur, interest begins to accrue unless specific conditions are met under the cross-margin multi-currency model.
This means that if you're trading with leverage and the market moves against you, you could end up owing money beyond your initial deposit. The key difference lies in how this debt is managed across different account types.
Interest Calculation and Deduction: Hourly Precision
One of the most important features of OKX’s margin system is its hourly interest calculation cycle. Here's how it works:
- Interest on liabilities is calculated every full hour, based on the outstanding debt at that moment.
- The deduction occurs at each整点 (top of the hour), starting from 00:00 UTC.
- If a liability exists even for a few minutes before the top of the hour, interest will be charged for the full hour.
Example Scenario:
Imagine you open a leveraged trade at 22:55 and incur a liability due to slippage or price movement. No interest is recorded until 23:00. At that point:
- The system checks your debt level.
- Calculates interest based on the borrowed amount.
- Automatically deducts the interest from your account.
However, if you repay the borrowed amount before 23:00, say at 22:57, then no interest is charged—because the liability didn't exist at the hourly checkpoint.
This design gives traders a narrow window to manage their positions without incurring additional costs, promoting active risk management.
The Advantage of Cross-Margin Multi-Currency Accounts: Fee-Free Liability Thresholds
Here’s where OKX introduces a powerful feature: fee-free liability thresholds in cross-margin multi-currency accounts.
Unlike isolated or standard full-margin modes, where all debts immediately accrue interest, the multi-currency cross-margin mode allows traders to carry unrealized losses up to a certain limit without being charged interest.
This means:
- If your unrealized loss pushes your balance into negative territory,
- But stays within the predefined免息额度 (interest-free threshold) for that asset,
- Then no interest will be applied.
This acts as a buffer during volatile market swings, giving traders breathing room to adjust positions without immediate financial penalty.
Full List of Interest-Free Thresholds by Asset
The免息额度 varies significantly across cryptocurrencies. Below is a structured breakdown of the maximum allowable fee-free liabilities per coin:
Stablecoins
- USDT: 20,000
- USDC: Max(0, user's USDC equity)
- USDK: Max(0, user's USDK equity)
- PAX: Max(0, user's PAX equity)
- TUSD: Max(0, user's TUSD equity)
Major Cryptocurrencies
- BTC: 1
- ETH: 5
- BCH: 5
- BSV: 5
- LTC: 10
- XRP: 5,000
- EOS: 500
- LINK: 50
- DOT: 50
- ADA: 500
- ALGO: 500
- ATOM: 20
- CRV: 100
- FIL: 10
- DASH: 2
- XTZ: 100
- ZEC: 2
- YFI: 0.01
- YFII: 0.1
Other Supported Tokens
- IOST: 10,000
- IOTA: 500
- KNC: 200
- NEO: 10
- ONT: 300
- QTUM: 100
- THETA: 100
- SUSHI: 30
- SUN: 20
- XLM: 1,000
- UNI: 20
- XMR: 2
These thresholds are dynamic for stablecoins pegged to the US dollar (like USDC, PAX), calculated based on your current equity in those assets.
👉 See how you can maximize your interest-free exposure and reduce financing costs in volatile markets.
Frequently Asked Questions (FAQ)
Q: What happens if my liability exceeds the免息额度?
If your debt surpasses the interest-free limit for a given asset, the excess amount will begin accruing interest at the standard rate, calculated hourly. It’s essential to monitor your exposure closely to avoid unexpected charges.
Q: Does the fee-free threshold apply to realized losses?
No. The免息额度 only applies to unrealized losses within the cross-margin multi-currency account framework. Once a position is closed and the loss is realized, standard margin rules apply.
Q: Can I transfer assets between margin modes freely?
Yes, but transfers between isolated and cross-margin accounts require manual action and may affect open position collateral. Always ensure sufficient buffer before moving funds.
Q: Is there a way to receive alerts when approaching the fee-free limit?
While OKX does not currently offer built-in alerts for fee-free threshold breaches, experienced traders often use third-party tools or set personal price triggers to stay informed.
Q: How are interest rates determined?
Interest rates fluctuate based on supply and demand for each asset on the platform. They are updated regularly and displayed directly in the trading interface under borrowing rates.
Strategic Tips for Managing Margin Exposure
To make the most of OKX’s margin system:
- Prefer cross-margin with multi-currency support when trading multiple assets—especially during high volatility.
- Monitor your unrealized P&L closely to stay within免息额度.
- Repay liabilities just before the top of the hour to avoid interest charges.
- Diversify stablecoin holdings (e.g., hold USDC, PAX) to increase aggregate fee-free capacity.
- Use stop-loss orders strategically to prevent sudden margin calls.
Understanding these nuances can significantly reduce financing costs and improve long-term profitability.
By leveraging OKX’s flexible margin systems and taking advantage of interest-free thresholds, traders gain greater control over their risk profiles. Whether you're engaging in short-term scalping or holding longer-term leveraged positions, knowing how debt and interest are calculated empowers smarter decision-making.
Stay informed, stay within limits, and trade with confidence.