Institutional Loan User Agreement

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Welcome to the comprehensive guide on OKX's Institutional Loan User Agreement. This document outlines the terms and conditions governing the use of the Institutional Loan Service, a peer-to-peer digital asset lending solution designed for eligible users on the OKX platform. Whether you're exploring crypto-backed loans or evaluating risk management frameworks, this guide ensures clarity, compliance, and confidence in your financial decisions.

Overview of the Institutional Loan Service

The Institutional Loan Service (referred to as "Service") is offered by an applicable OKX entity to qualified users ("you" or "Customer"). This service enables users to obtain peer-to-peer loans of digital assets on the OKX platform for a fixed duration, subject to specific terms and collateral requirements.

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This Institutional Loan User Agreement ("Agreement") governs your access and use of the Service. By utilizing the Service, you confirm that you have read, understood, and agreed to all terms herein, making this Agreement legally binding. In cases of conflict between this Agreement and other OKX policies, this document takes precedence. Undefined terms are incorporated from the broader OKX Terms of Service.

Eligibility Requirements for Users

Access to the Institutional Loan Service is not universal. OKX evaluates eligibility on a case-by-case basis and retains full discretion in determining who may participate.

To qualify, you must affirm the following:

Additionally, you agree not to use the Service for prohibited purposes such as money laundering, terrorist financing, fraud, or market manipulation—including price manipulation or insider trading.

You also acknowledge inherent risks associated with digital asset lending, including:

Risk Management Framework

OKX employs robust mechanisms to maintain platform stability and protect user interests.

Key Risk Controls Include:

These controls help prevent systemic risk and ensure fair operation across the lending ecosystem.

How the Institutional Loan Service Works

4.1 Institutional Loan Process

To initiate a loan request:

  1. Submit an order specifying:

    • The desired digital asset (currently only USDT)
    • Maximum loan amount
    • Optional maximum APR preference

Interest rates are displayed as annualized percentage rates (APR), determined dynamically by OKX based on market conditions. If no Maximum APR is set, the prevailing market rate applies at order placement.

As of now:

OKX reserves the right to adjust minimum/maximum loan limits at any time.

Order Matching & Drawdown Mechanics

Your loan request may be split into sub-orders at OKX’s discretion. A successful match depends on:

Three types of drawdowns apply:

Unmatched portions remain active only if current APR is below your Maximum APR; otherwise, they are canceled.

Once matched, orders cannot be modified or canceled. However, liquidity can fluctuate before drawdown occurs.

Loan terms begin at drawdown time. If insufficient collateral delays drawdown, the term still starts when readiness is confirmed.

At drawdown:

4.2 Collateral Requirements

Upon drawdown, you must maintain digital assets or approved fiat equivalent to 40% of the loan value as Collateral. Withdrawals reducing margin below 40% are blocked.

You grant OKX:

Margin Monitoring & Liquidation Triggers

You bear responsibility for all resulting losses.

You also commit to providing additional documentation upon request to maintain the validity and enforceability of OKX’s security interest. This includes executing further instruments or authorizing OKX as your attorney-in-fact for collateral-related actions.

4.3 Digital Asset Pricing

All prices and exchange rates used in calculations are determined solely by OKX and published on the platform.

4.4 Repayment Terms

Repayment requires returning the original digital asset amount plus Full Term Interest by maturity.

Late Repayment Consequences

Failure to repay on time results in:

Early Repayment Options

You may repay:

4.5 Loan Term Details

Loan duration begins at drawdown and varies per sub-order. The APR remains fixed for each sub-order's term.

4.6 Rollover Option

Seven days (168 hours) before maturity, you may choose to rollover your loan:

  1. OKX freezes:

    • Full Term Interest for existing loan
    • Equivalent of 14 days’ Overdue Interest
  2. A new loan order is initiated on your behalf

If the new loan draws down:

If no drawdown occurs within 14 days post-maturity:

Matched portions cannot be altered after execution.

Service Suspension or Termination

OKX may suspend or terminate your access to the Institutional Loan Service at any time, without notice, under circumstances including:

Termination does not absolve you of outstanding obligations.

Representations and Warranties

You represent and warrant that:

Any breach constitutes default. You agree to indemnify OKX against losses arising from such breaches.

Limitation of Liability

7.1 Risk Disclosure

You acknowledge that using this Service involves significant risk:

Some jurisdictions do not allow exclusion of implied warranties—this limitation may not apply to you.

You accept full responsibility for:

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7.2 User Responsibility

You are fully liable for all trading and non-trading activities on your account. OKX assumes no responsibility for gains, losses, or transaction outcomes.

7.3 Asset Redemption Timing

Redemption times vary. Final asset balances displayed on-platform are binding. OKX is not liable for timing-related discrepancies.

7.4 Agreement Modifications

OKX may amend this Agreement at any time. Continued use constitutes acceptance. No liability arises from user misunderstanding or delayed review.

7.5 System Disruptions

OKX is not liable for losses caused by:

Such events may result in abnormal trades or rejected orders—OKX reserves discretion in handling them.

7.7 Technology Risks

Open-source protocols underlying digital assets evolve independently of OKX. Users must monitor technological changes affecting their holdings. Transaction failures due to unforeseen technical issues are borne by the user.

FAQ: Frequently Asked Questions

Q: What happens if my collateral value drops suddenly?
A: If your margin ratio falls to 30%, you’ll receive a margin call. At 15%, OKX may forcibly liquidate positions to cover exposure.

Q: Can I repay my loan early without penalty?
A: Yes, but interest is charged up to the hour of repayment if done within 24 hours of maturity.

Q: Is rollover guaranteed?
A: No. Rollover depends on real-time liquidity matching. Unmatched portions may lead to overdue status and liquidation risk.

Q: Which assets can I borrow?
A: Currently only USDT is supported, with a standard 90-day term.

Q: Who owns my collateral during the loan?
A: You retain ownership, but OKX holds a first-priority security interest and may liquidate it if margin thresholds are breached.

Q: Can I transfer my loan obligation to another party?
A: No. Without prior written consent from OKX, assignment or transfer of rights under this Agreement is prohibited.

Mandatory Measures Against Misconduct

OKX strictly prohibits unfair practices such as market manipulation or insider trading. Violations may result in:

OKX will not compensate for losses incurred due to enforcement actions taken to preserve market fairness.

Indemnification Clause

You agree to defend, indemnify, and hold harmless OKX and its affiliates from any claims, damages, fines, or legal fees arising from your use of the Service or breach of this Agreement.

Miscellaneous Provisions

This Agreement integrates core keywords such as institutional loan, digital asset lending, crypto collateral, margin ratio, loan rollover, peer-to-peer crypto loans, risk management, and overdue interest—ensuring alignment with user search intent while maintaining legal precision and readability.