What's an OKX Flexible Loan?
What's an OKX Flexible Loan?
Cryptocurrency loans, often referred to as crypto-backed loans, involve borrowers using their digital assets as collateral to secure a loan. This concept allows users to access liquidity without the need to sell their cryptocurrencies, providing flexibility and preserving long-term investment strategies. OKX Loan is no different, as it allows users to increase cash flow without selling off their crypto.
How OKX Flexible Loan works?
We simplify the process of obtaining a crypto loan, making it accessible to a wide range of users. The platform acts as a bridge between lenders and borrowers, ensuring a secure and transparent lending environment. Users can navigate the loan process seamlessly through the OKX interface.
Loan application
Borrowers begin by submitting a loan application on our platform. This involves specifying the desired loan amount and the cryptocurrency they are willing to use as collateral.
Collateralization
Once the application is submitted, the collateral is pledged in your loan order to back the borrowed amount. We support cross-collateral borrowing — you can pledge multiple assets (for example, BTC) simultaneously to back one or more loans. All pledged collateral is pooled at the order level to support all outstanding liabilities.
Loan disbursement
Loans are promptly disbursed to the borrower's funding account or trading account, providing quick access to the requested funds. Borrowed funds are freely transferable — you can move them to your trading account, withdraw them to an external wallet, or use them however you choose. The entire process is designed to be efficient and user-friendly.
Why should I use OKX Flexible Loan?
Cross-collateral, cross-borrowing: Similar to cross margin mode, Flexible Loan supports multiple collateral assets to secure multiple loans simultaneously. For example, you can pledge both BTC and ETH as collateral while borrowing USDT and USDC at the same time. All collateral is pooled together to back all outstanding loans.
Funds are transferable: Unlike some lending products, borrowed funds aren't locked in your account. You can freely transfer them out to other accounts or withdraw, giving you full flexibility over how you use the capital — whether for trading on another platform, DeFi, or personal use.
Overcollateralized: Every loan is fully backed by collateral exceeding the borrowed value. With a Loan-to-Value (LTV) of 80%, there is always a buffer to protect against market fluctuations. If your LTV rises due to collateral depreciation, you'll be prompted to add collateral or repay part of the loan to avoid liquidation.
Flexible repayment: No fixed terms, no maturity dates. Repay anytime, in any amount. Interest accrues hourly, and you only pay for what you use.
What are the tokens that's available for loan?
We provide a diverse selection of over 150 cryptocurrencies on its platform, which users can utilize as collateral to secure loans. These tokens include but are not limited to Bitcoin (BTC), Ethereum (ETH), and an array of other prominent cryptocurrencies available on our platform.
How do I apply for a Flexible Loan?
Go to the Loan page:
On the app: open your OKX App, go to Explore > Loan and select Start borrowing
Select Start borrowing option in the Loan page
On the web: log in to your account at okx.com and go to Grow > Loan
Select your preferred token and insert your preferred borrowed amount
Select your preferred single or multi-currencies as your collateral in the Collateral and Continue
Read through the order summary and select the checkbox to agree with the user agreement
Select Confirm to complete the request
You can create up to 10 active loan orders per account. Each order supports multiple collateral assets and multiple borrowed currencies simultaneously.
You can visit here to learn more.
FAQ
1. Do I need to verify my account to use a flexible loan?
Yes, you're required to complete Identity verification to apply for a flexible loan.
2. What is my borrowing limit for flexible loans?
Your maximum borrowing amount is determined by the minimum of two factors:
VIP borrow limit: Your maximum borrowable amount based on your VIP level.
Platform coin borrow cap.
Note: the borrowable amount varies by crypto, as different assets are subject to different discount rates. Please refer to the figures displayed on the page for the exact amount.
3. Why is my liquidation LTV low?
It is because you have chosen a token that has a lower discount rate to apply for a flexible loan.
There are three key LTV levels to monitor:
LTV level | Threshold | What happens |
|---|---|---|
Max Initial LTV | ~80% | Maximum LTV when opening a loan. For every $100 of adjusted collateral, you can borrow up to $80. |
Margin Call LTV | ~88% (Liquidation LTV - 10%) | OKX sends an email and push notification warning you of liquidation risk. |
Liquidation LTV | 97% - 98% | Forced liquidation is triggered. Your collateral will be partially or fully sold to repay the loan. |
4. Can I apply for another loan after I've applied previously?
Yes, you can create up to 10 active loan orders per account. Each order can include multiple collateral assets and multiple borrowed currencies simultaneously. For example, a single order can have BTC and ETH as collateral while borrowing both USDT and USDC at the same time.
However, if your current LTV is higher than your initial LTV when applying for an additional order, you may be required to add more collateral to maintain a safe LTV ratio.
5. Why is the APR different hourly?
Our APR is calculated hourly based on market conditions. When you place a borrowed order, you'll see the current hour's APR as a reference. Your actual interest charge will be based on the next hour's market APR after your order is placed, and will continue to update each hour.
6. Why can't I select the same currency for my collateral as my borrowing in the flexible loan?
These currencies are included as collateral and the borrowed currency and the pledge currency are mutually exclusive, hence you can't select these currencies as your pledge token and borrowing token.
7. Why does the force repayment happen in flexible loans?
Force repayment occurs when our platform's borrowing limit for a specific crypto has been exceeded. In such cases, our system will automatically sell the token you've used as collateral to repay the loan in borrowed tokens.
For example, if our platform's borrowing limit for OKB is 1,000,000, but the total amount borrowed by loan users reaches 1,500,000 OKB, and you've used BTC as collateral to borrow OKB, we'll sell your BTC to buy more OKB and settle your loan.
8. Why is my pledge amount not released even though I've repaid my loan?
It is because the discount rate of the remaining token is small. Hence, it is not able to transfer out. However, you're allowed to reduce collateral several times in the loan details.
9. Can I still benefit from ETH2.0 staking after setting BETH as collateral in Loan?
Yes, you will still receive ETH2.0 rewards if BETH is your collateral in Loan.
10. How do I manage my flexible loan?
Easily adjust your loan and collateral amount at any time by going to the Order details page.
11. How do I repay my flexible loan?
Repayment supports two methods: repay with the borrowed crypto, or repay using your collateral assets.
On the app:
1. Open the OKX app and tap Assets
2. Under Portfolio, tap Loan and select the loan order you want to repay
3. Tap Repay, choose between With loan crypto Crypto or With Collateral, enter the Repayment amount, and follow the on-screen instructions to complete.
On the web:
Go to the Active Loans page and select repay. We support partial and full repayments.
12. Are there any fees or fixed repayment deadlines?
No. Our flexible loan has no fixed terms, no maturity dates, and no overdue fees. You can repay anytime in any amount. If interest isn't paid, it's automatically rolled over and added to your outstanding loan principal each hour. You only pay for what you use, for as long as you borrow.