Margin and Derivatives Trading Agreement

·

Section 1 - Introduction

1. Scope

1.1 This Agreement applies to all Services offered by OKX Middle East Fintech FZE ("OKX") through its Platform to Users ("you").
1.2 Services are detailed in Section 2.

2. Applicability

2.1 This Agreement supplements the Terms of Service and prevails in case of conflicts.
2.2 Capitalized terms retain their definitions from the Terms of Service unless otherwise specified in Schedule 1.

3. Classification

3.1 Users are classified as:

4. Acceptance

4.1 Using the Services constitutes acceptance of this Agreement and acknowledgment of associated risks.

Section 2 - The Services

5. The Services

5.1 OKX offers:

6. Margin Trading

6.1 Users must deposit Virtual Assets or Eligible Fiat Currency as Margin.
6.2 Leverage is expressed as a multiple of deposited assets, subject to OKX’s discretion and Applicable Law.
6.3 Interest applies to borrowed Virtual Assets upon trade execution.

👉 Explore Margin Trading on OKX

7. Futures Contracts

7.1 Contracts specify buying/selling Virtual Assets at a future date and price.
7.2 Settlement occurs weekly at 12:00pm UAE Time (08:00 UTC).

8. Options Contracts

8.1 Options Contracts allow rights (not obligations) to buy/sell assets at expiry.
8.2 Automatic exercise occurs if contracts are in-the-money at expiry.

9. Perpetual Contracts

9.1 No expiry date; funding rates adjust every 8 hours (04:00, 12:00, 20:00 UAE Time).
9.2 OKX calculates and settles funding dues between Users.

Section 3 - Fees and Payments

10. Fees

10.1 Fees apply per trade (opening, closing, liquidation).
10.2 Updated fee schedules are available here.

11. Taxes

11.1 VAT or other taxes may apply per Applicable Law.

Section 4 - Trading

12. Trading Account Modes

12.1 Three modes:

👉 Learn about Trading Modes

13. Margin Trading Mechanics

13.1 Initial Margin required to open positions; Maintenance Margin must be upheld to avoid liquidation.
13.2 Users monitor Margin Ratios via Early Warning Notifications (default threshold: 300%).

14. Derivatives Trading

14.1 Contracts matched between Users; OKX is not a party.
14.2 Settlement terms follow Contract Specifications.

Section 5 - Liquidation and Insurance Fund

17. Liquidation

17.1 OKX may liquidate accounts if Margin Ratio ≤100%.
17.2 Partial/full liquidation at OKX’s discretion; fees may apply.

18. Insurance Fund

18.1 Covers negative balances post-liquidation; no guaranteed protection.

19. Auto-Deleveraging

19.1 Activates if Insurance Fund depletes by 30% in 8 hours.
19.2 Forces liquidation of profitable positions to stabilize the fund.

Section 6 - Risk Disclosure

20. Key Risks

20.1 Leverage Risk: Small price movements can magnify gains/losses.
20.2 Margin Calls: Users must top up Margin promptly to avoid liquidation.
20.3 Market Volatility: Rapid changes may trigger Auto-Deleveraging.

Section 7 - Miscellaneous

25. Amendments

25.1 OKX may update terms; changes communicated via Platform/email.

26. Termination

26.1 Users must settle liabilities before closing accounts.

Schedule 1 – Definitions

| Term | Definition |
|------|-----------|
| Leverage | Multiplier applied to Margin for higher exposure. |
| Maintenance Margin | Minimum Margin to keep positions open. |
| VARA Rules | Regulations by Dubai’s Virtual Asset Regulatory Authority. |

FAQ

1. What happens if my Margin Ratio drops below 100%?

Your positions may be liquidated to cover losses.

2. Can Retail Investors trade all Derivatives?

No, only Margin Trading is permitted for Retail Investors.

3. How is the Funding Rate calculated?

Rates vary per Perpetual Contract and adjust every 8 hours.

4. What is Auto-Deleveraging?

A mechanism to liquidate profitable positions during extreme volatility to protect the Insurance Fund.

Updated April 7, 2025