In the evolving world of digital asset trading, understanding how margin systems work is essential for maximizing efficiency and minimizing risk. Two advanced margin models—cross-currency margin mode and portfolio margin mode—offer traders greater flexibility in managing their full position accounts. This guide breaks down how borrowing and repayment function within these frameworks, helping you navigate liabilities, interest calculations, auto-borrow settings, and more.
What Are Cross-Currency and Portfolio Margin Modes?
Cross-Currency Margin Mode
In this model, users select specific cryptocurrencies to serve as collateral. These assets are converted into USD value and used to support all full-position trades across the account. This gives traders control over which coins they pledge while maintaining diversified exposure.
Portfolio Margin Mode
This mode automatically includes all eligible platform assets as collateral. Every supported cryptocurrency in your portfolio is valued in USD and pooled together to back your full-position trading activities. It maximizes capital efficiency by leveraging your entire holdings.
👉 Discover how margin modes can boost your trading power
Both systems allow users to choose whether to enable automatic borrowing. Regardless of this setting, unrealized losses from futures or perpetual contract positions—and declining values in options portfolios—generate liabilities that remain interest-free within a defined grace threshold (the "interest-free quota"). Only amounts exceeding this quota accrue hourly interest charges.
Auto-Borrow: To Enable or Not?
When Auto-Borrow Is Enabled
- Negative balances incur hourly interest.
- Unrealized losses from futures/perpetual contracts are interest-free up to the quota; excess amounts draw interest hourly.
- You can borrow funds for spot trading, increasing flexibility.
When Auto-Borrow Is Disabled
- Negative balances and unrealized losses are still interest-free within the quota.
- If liabilities exceed the quota, the system triggers auto-exchange: other assets in your account are sold automatically to cover the deficit.
- If your available equity in a given currency falls below required fee levels, you cannot borrow for spot trades or engage in derivatives trading.
This setting allows traders to balance between convenience and risk control—opting for seamless access to leverage or prioritizing strict capital discipline.
Understanding Liabilities in Full Position Accounts
A full position liability arises when a currency’s equity in your account drops below zero. The formula is simple:
Full Position Liability = Abs {Min[0, Currency Equity (Full Position)]}
Here are common scenarios where liabilities occur:
1. Spot Leveraged Order Execution
When a leveraged spot order executes and your balance doesn’t cover the sale amount, a liability forms.
Example: With 100,000 USDC, selling 1 BTC via leveraged spot order may result in -1 BTC equity—creating a 1 BTC liability.
2. Derivatives & Options Trading Fees
If fees for futures, perpetuals, or options orders exceed your balance in that currency, a shortfall occurs.
Example: A $10,000 perpetual contract trade with a 2 USDT fee results in -2 USDT equity if insufficient funds exist.
3. Isolated Position Orders
For isolated margin trades, if your equity can't cover initial margin and fees, a liability is created.
Example: Opening a $1,000 isolated position requiring 100 USDT margin + 0.2 USDT fee leads to -100.2 USDT equity.
4. Closing Short Options Positions (Cross-Currency Mode Only)
Buying to close a short options position requires paying the premium. If unaffordable, it creates a liability.
Example: Closing with a 0.02 BTC premium obligation results in -0.02 BTC equity.
5. Unrealized Losses in Futures/Perpetuals
As market prices shift against your position, unrealized losses reduce equity—potentially causing negative balances.
Example: A -100 USDT unrealized loss creates a matching liability if no buffer exists.
6. Declining Options Position Value
Options values fluctuate with underlying prices. A sharp drop can make your position worth less than zero in base currency terms.
Example: A short option valued at -1.1 BTC with only 1 BTC held creates a 0.1 BTC liability.
7. Perpetual Contract Funding Fees
Holders pay or receive funding every eight hours. If you owe funds and lack sufficient balance, a liability forms.
Example: A 10 USDT funding fee with no available USDT creates a -10 USDT balance.
Interest-Free Quotas: Your Financial Buffer Zone
OKX provides interest-free thresholds for certain types of liabilities:
- With auto-borrow on, unrealized losses from futures/perpetuals are interest-free up to the quota.
- With auto-borrow off, both negative balances and unrealized losses are protected—excess amounts trigger auto-exchange.
Interest-Free Quotas by Currency (Examples)
- USDT: 20,000 + USDC available equity
- BTC: 1 BTC
- ETH: 5 ETH
- USDC: 5,000
- XRP: 5,000
- TRX: 30,000
These quotas act as safety nets, allowing small fluctuations without triggering interest or forced liquidations.
How Interest Is Calculated and Deducted
Interest is assessed hourly at整点 (top of the hour):
- The system records liabilities at that moment (including those formed within one minute after).
- Deductions happen within three minutes.
- Interest applies only to amounts above the interest-free quota.
Interest = (Liability – Quota) × (Annual Rate / 365 / 24)
Example: At 22:50, you incur debt. No charge until 23:00. If you repay by 22:57, no interest is charged.
Potential Borrowing and Borrowing Limits
"Potential borrowing" refers to projected liabilities from pending orders or market movements.
Potential Borrowing = Abs {Min[0, Currency Equity – Occupied Equity]}
It impacts your borrowing capacity even before actual borrowing occurs.
Common triggers:
- Placing large spot leveraged orders
- Opening high-leverage isolated positions
- Anticipated funding fees or unrealized losses
Each potential borrow consumes part of your total borrowing limit.
👉 See how much you could borrow based on your current holdings
Borrowing Limits: Three Key Constraints
1. Position Tier Restrictions
Higher leverage reduces maximum borrowable amounts. Even with ample funds, high leverage may restrict order size. Lowering leverage increases purchasing power.
2. Main Account Borrowing Cap
All borrowing—across main and subaccounts—is capped by your VIP level and chosen currency. For example:
- VIP 5 users may have a 35 million USDT borrowing cap.
- This limit is shared across all accounts under the main ID.
3. Platform-Wide Lending Pool
Total borrowing capacity depends on funds deposited into OKX’s flexible earning products (e.g., Simple Earn). When demand exceeds supply, borrowing rates rise or availability tightens.
How to Check Your Borrowing Data
You can monitor borrowing metrics via:
Asset Panel (Trading Interface)
Located at Trade > Assets, this panel shows:
- Current liabilities
- Potential borrowing amounts
- Click values to see leverage ratio, required margin, and remaining limits
Borrowing Details Page
Access via asset panel or Order Center > Borrowing Data:
- Current Borrowings: View total borrowed amount per coin, hourly interest rate (annualized), interest-free debt, and available/main account limits.
- Deduction Records: Track hourly interest deductions—time, position type, pair, currency, and amount deducted.
Market Borrowing Information
Navigate to Trade/Market Info > Leverage Borrow Info to see:
- Total platform borrow volume per coin
- Last hour’s rate
- Next hour’s estimated rate
This helps assess market sentiment and forecast costs.
Repaying Your Liabilities
There are three effective ways to clear debts:
1. Spot Trading
Buy the liable currency through regular spot trading—the system automatically repays the equivalent liability.
Example: Owed 500 USDT? Buy 500 USDT—debt cleared instantly.
2. One-Click Repayment
Go to Trade > Assets > One-Click Repay:
- Select the debt currency
- Choose which asset(s) to sell (BTC, ETH, USDT, etc.)
- Confirm—the system sells and settles automatically
3. Fund Transfer
Transfer the owed currency from your funding account to your trading account—repayment happens automatically upon receipt.
Frequently Asked Questions (FAQ)
Q: What happens if I exceed my interest-free quota?
A: Excess liabilities begin accruing hourly interest if auto-borrow is enabled. If disabled, OKX will automatically sell other assets to cover the excess.
Q: Can I avoid interest entirely?
A: Yes—by staying within the interest-free quota or repaying before the top of the hour when interest is calculated.
Q: Does potential borrowing affect my ability to open new trades?
A: Yes—it consumes your borrowing limit and may restrict new leveraged activity until resolved.
Q: How often is interest charged?
A: Every hour on the hour, based on snapshot data taken at that time.
Q: Can I use any coin as collateral in cross-currency mode?
A: Only supported cryptocurrencies designated by OKX can be selected as collateral assets.
Q: Is there a penalty for late repayment?
A: While there's no flat penalty, prolonged outstanding balances accumulate interest and increase liquidation risk.