OKX investment Loan
OKX Investment VIP loans service aims to provide large loan limits with low-interest exclusively for customers who’re VIP5 or above on top of the existing margin loan service.
What is VIP loans
VIP loans provide VIP clients with an additional lending pool. In the past, client’s liabilities were borrowed from the Savings pool (Market Borrow).
Assume the user has 1 BTC (where 1 BTC = 100 USDT), he/she will need 1 BTC as margin (collateral) to borrow 1,000 USDT to buy 10 BTC. After transaction is completed, user gets 11 BTC as asset and 1,000 USDT liability. Without VIP loans, the 1,000 USDT can only be borrowed from the Market Borrow.
However, there’s a limit to Market Borrow. When Market Borrow limit remains 500 USDT (that could be the case the USDT in Savings pool has been borrowed by others, or occupied by user’s other positions), even the user has enough margin he/she can only borrow 500 USDT to buy 5 BTC – unable to finish the 10x leverage trade. With VIP loans of 500 USDT, the additional borrow limit enables the user to finish that 10x leverage trade.