OKX to Enhance Portfolio Margin Mode with New Features
OKX, one of the leading cryptocurrency exchanges, announced its plans to update the spot-derivatives risk offset mode within its portfolio margin mode. According to OKX, the update will take place on June 5, 2024, at 4:00 am UTC, and aims to further enhance the trading experience for its users.
Key Updates to Portfolio Margin Mode
The enhancements to the portfolio margin mode include several key updates:
- Richer Offset Structure Types: OKX will incorporate spot orders into the derivatives offset system, distinct from spot assets. This update will add offset structures for spot and derivatives orders, potentially reducing the margin in use within the Liquid Marketplace.
- Flexible Spot Offset Quantity Adjustments: Users will now have the ability to customize the number of spot assets included in the derivatives offset structure, offering greater flexibility.
- More Accurate Numerical Calculations: The update will introduce more precise measurements for spot assets within the derivatives margin system. This includes adjustments to the handling of spot assets during liquidations and an enhanced Maintenance Margin Requirement (MMR) calculation to account for basis risk between spot assets/orders and derivatives positions/orders (MR4). For example, the MMR could increase in scenarios where spot assets are offset with perpetual, expiry futures, or options.
- Enhanced Liquidation Engine: The liquidation structure will be improved by incorporating a basis risk offsetting process between spot and derivatives positions.
- Diverse Offsetting Modes: The spot offsetting function will be expanded to all margin modes, including USDT/USDC/Crypto modes. This will support offsetting between spot assets and their corresponding USDC-margined risk units.
Impact on Maintenance Margin Requirements
The updated MMR calculations will have a significant impact on the margin requirements for various trading structures. For example, before the update, the MMR for open positions involving BTC spot and BTCUSDT perpetual contracts was 3,020.87 USDT. Post-update, the MMR will increase to 8,053.32 USDT, reflecting more accurate risk assessments.
The table below illustrates the range of offsetting instruments for various modes:
| Offset mode | ETH-USDT risk unit | ETH-USDC risk unit | ETH-USD risk unit |
|---|---|---|---|
| Derivatives | ETHUSDT perpetual/expiry (positions and orders) | ETHUSDC perpetual/expiry (positions and orders) | ETHUSD perpetual/expiry/options (positions and orders) |
| Spot-derivatives (USDT) | ETHUSDT perpetual/expiry, ETH spot assets, ETH/USDT and ETH/USDC spot orders | ETHUSDC perpetual/expiry (positions and orders) | ETHUSD perpetual/expiry/options (positions and orders) |
| Spot-derivatives (USDC) | ETHUSDT perpetual/expiry (positions and orders) | ETHUSDC perpetual/expiry (positions and orders), ETH spot assets, ETH/USDT and ETH/USDC spot orders | ETHUSDT perpetual/expiry (positions and orders) |
| Spot-derivatives (crypto) | ETHUSDT perpetual/expiry (positions and orders) | ETHUSDC perpetual/expiry (positions and orders) | ETHUSD perpetual/expiry/options (positions and orders), ETH spot assets, ETH/USDT and ETH/USDC spot orders |
Details on the spot-derivatives risk offset updates and maintenance margin rules can be found on the OKX page.