Created by OKX, Savings is a crypto asset value-added service that allows users to benefit from several offers and earn profit every hour. Users can seamlessly deposit assets and transfer them to be used in the Savings section for market-based interest rates and hourly payments. Assets can also be withdrawn from the Savings service at any time, and the entire process benefits from the high security and risk management protocols set up by OKX.
1. Use of assets
The assets in Savings are used for OKX's margin loan services. Hence, the Savings service only supports crypto assets available for OKX margin trading.
3. Rules for subscriptions and redemptions
Users can subscribe to offers at any time. After a successful subscription, the assets will be locked in Savings to participate in interest rate bidding according to set lending parameters. If a bid is successful, the funds will be lent to leveraged crypto borrowing users.
Users can apply for redemption at any time, and the assets requested for redemption are expected to arrive at the next full point regardless of whether they are currently in lending or not. The assets requested for redemption will not participate in the interest rate matching and interest accrual at the next full point.
Rules for limits
Please see the below table for the limits of inbound tokens transfers. Both the main and sub accounts share this limit. Currently, there is no limit for outbound tokens transfers. We continue to monitor the market situations and adjust these limits as deemed necessary.
3. Interest rate setting and interest payment rules
Interest rate setting rules
Users can customize the "minimum lending APY". If it is not set, the system will help users lend at the best rate. The marketplace assesses borrowing demand every hour and sorts bids according to the “minimum lending APY”, from the lowest to the highest bid. The highest value of the bid is set as the “current lending APY”.
The system then follows the rules below based on these parameters:
- If the minimum lending APY < current lending APY, the loan will be successfully lent at the current lending APY.
- If the minimum lending APY > current lending APY, the lending will fail and there will be no interest
- If the minimum lending APY = current lending APY, the loan may be partially lent or failed.
When the minimum lending APY is the same as the current lending APY, success of the loan will depend on the principle of time priority i.e. based on who applies for it first.
Interest calculation and payment rules
If the auction is successful, the time of participation is considered T and the interest rate from T to T+1 hours is settled immediately.
15% of the interest is used as risk deposit and 85% is allocated to the lending user. This means the lending user receives interest based on the following formula: lending principal*current lending annualized/365/24*85%
Rules for clawback for margin call loss
In case the margin trading insurance fund cannot cover a margin call loss, the daily distributable interest will be clawed back to cover the outstanding loss. Only a maximum of 50% of the daily interest income will be clawed back so as to ensure users receive interest income every day. The outstanding loss not covered by the clawback amount will be covered in advance by OKX and the amount will be offset gradually against the insurance fund and daily distributable interest in the future.
Token amounts for generating interest in Savings
- Token value ≥ 1,000 USDT, minimum amount for generating interest: 0.0001
- 100 USDT≤ Token value < 1,000 USDT, minimum amount for generating interest: 0.001
- 10 USDT≤ Token value < 100 USDT, minimum amount for generating interest: 0.01
- 1 USDT≤ Token value < 10 USDT, minimum amount for generating interest: 0.1
- Token value < 1 USDT, minimum amount for generating interest: 1
Auto calculation of token value takes place at 12:00 am UTC every day.