The cryptocurrency market is inherently volatile, especially during events like hard forks. To safeguard traders and maintain platform stability, OKX has implemented strategic adjustments to its BCH contract tier system. This article breaks down the changes to the BCHUSDT and BCHUSD perpetual and delivery contracts, explains the rationale behind the update, and offers actionable risk management tips for traders.
Understanding the BCH Contract Tier Adjustment
On November 5, 2020, OKX executed a critical update to the grading tier rules for Bitcoin Cash (BCH) contracts. The adjustment was scheduled between 17:00 and 17:30 HKT to mitigate potential risks associated with BCH’s network fork. These modifications were designed to reduce the likelihood of liquidations and loss distribution (auto-deleveraging) during periods of extreme price volatility.
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The core of the update lies in revised margin requirements and position tiers across four key contract types:
- BCHUSDT Perpetual Contract
- BCHUSD Perpetual Contract
- BCHUSDT Delivery Contract
- BCHUSD Delivery Contract
Each contract type now features recalibrated maintenance margin rates, initial margin requirements, and maximum leverage levels based on position size.
Updated Tier Structure for BCHUSDT Perpetual Contract
The BCHUSDT perpetual contract now enforces stricter margin rules as position size increases:
- Tier 1: Positions from 0 to 400 contracts require a 3.00% maintenance margin and offer up to 25x leverage.
- Tier 2: From 401 to 4,000 contracts, maintenance margin rises to 3.50%, with max leverage dropping to 22.22x.
- Tier 3: 4,001–12,000 contracts require a 4.00% maintenance margin and allow 20x leverage.
- Tier 4: Positions between 12,001 and 20,000 contracts face a 4.50% maintenance rate and 18.18x max leverage.
- Tier 5: For 20,001–28,000 contracts, maintenance margin is 5.00%, with leverage capped at 16.67x.
- Tier 6+: Each subsequent tier increases by 8,000 contracts, with maintenance and initial margins rising by 0.5% per tier.
This tiered escalation ensures larger positions are better collateralized, reducing systemic risk.
BCHUSD Perpetual Contract Updates
The BCHUSD perpetual contract follows a similar structure but with higher volume thresholds:
- Tier 1: 0–1,000 contracts (3.00% maintenance, 25x leverage)
- Tier 2: 1,001–10,000 contracts (3.50% maintenance, 22.22x leverage)
- Tier 3: 10,001–30,000 contracts (4.00% maintenance, 20x leverage)
- Tier 4: 30,001–50,000 contracts (4.50% maintenance, 18.18x leverage)
- Tier 5: 50,001–70,000 contracts (5.00% maintenance, 16.67x leverage)
- Tier 6+: Increments of 20,000 contracts per tier, with margins increasing by 0.5% each step.
This structure accommodates larger institutional-grade positions while maintaining risk discipline.
BCHUSDT Delivery Contract Adjustments
For time-bound futures traders, the BCHUSDT delivery contract now includes:
- Tier 1: 0–200 contracts (3.00% maintenance, 25x leverage)
- Tier 2: 201–1,000 contracts (3.50% maintenance, 22.22x leverage)
- Tier 3: 1,001–11,000 contracts (4.00% maintenance, 20x leverage)
- Tier 4: 11,001–21,000 contracts (4.50% maintenance, 18.18x leverage)
- Tier 5: 21,001–31,000 contracts (5.00% maintenance, 16.67x leverage)
- Tier 6+: Increments of 10,000 contracts with corresponding margin increases.
BCHUSD Delivery Contract Revisions
Mirroring the perpetual USD version:
- Tier 1: 0–1,000 contracts (3.0% maintenance)
- Tier 5: Up to 70,000 contracts before Tier 6 activates
- Tier 6+: +20,000 contracts per tier, +0.5% margin per step
This symmetry ensures consistent risk management across both perpetual and delivery products.
Why Tier Adjustments Matter During Fork Events
Hard forks introduce uncertainty—chain splits, replay attacks, and price divergence can trigger wild swings in market sentiment and valuation. During such times:
- Liquidity may thin out temporarily
- Price oracles can lag or misreport
- Arbitrage opportunities attract high-frequency traders
All these factors increase the chance of liquidations—when a trader’s margin falls below the maintenance level and their position is automatically closed.
By tightening margin requirements ahead of the fork, OKX reduced the probability of cascading liquidations that could strain the insurance fund or lead to auto-deleveraging (ADL), where profitable traders are forced to take over losing positions.
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Risk Management Tips for BCH Traders
Even with platform-level safeguards, individual traders must remain proactive:
Monitor Your Effective Leverage
As your position size grows into higher tiers, your effective leverage decreases. A position that started at 25x might drop to under 17x in higher brackets—misjudging this can lead to unexpected margin calls.
Use Stop-Loss Orders Strategically
Set stop-losses outside normal volatility bands but close enough to limit downside. Consider using trailing stops during uncertain periods.
Avoid Overexposure Before Forks
Historically, forks don’t always result in profitable airdrops or sustained price increases. Holding oversized positions increases exposure without guaranteed returns.
Top Up Margins Proactively
If you’re near a tier boundary, consider adding margin before the market moves against you. Waiting until a margin call may leave you with limited options.
Frequently Asked Questions (FAQ)
Q: Why did OKX adjust the BCH contract tiers?
A: The changes were implemented to reduce liquidation risks during the BCH network fork when price volatility and market uncertainty peak.
Q: Did these changes affect all contract types equally?
A: No. While all BCH contracts saw tighter margin rules, the exact thresholds vary between USDT and USD-denominated instruments due to differences in typical position sizes and trading volume.
Q: How do tiered margin systems protect traders?
A: They ensure larger positions carry higher collateral requirements, which reduces systemic risk and protects both individual traders and the broader platform from cascading liquidations.
Q: What happens if my position crosses into a higher tier?
A: Your maintenance margin requirement increases proportionally. If your available margin doesn’t meet the new threshold, you may face liquidation unless you add funds or reduce position size.
Q: Were users notified in advance?
A: Yes. OKX issued this announcement prior to implementation to allow traders time to adjust their strategies and manage risk accordingly.
Q: Are these changes permanent?
A: While introduced for fork-related risk mitigation, such tier structures often remain in place post-event if they improve overall platform resilience.
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Final Thoughts
Market infrastructure evolves in response to real-world challenges. The BCH contract tier adjustment reflects OKX’s commitment to balancing innovation with stability. By understanding how margin tiers work—and adapting trading behavior accordingly—users can navigate volatile events more safely and effectively.
Staying informed about contract rule changes is not just about compliance; it's about gaining a competitive edge in risk-aware trading. As crypto markets mature, platforms that prioritize transparency and user protection will continue to lead the way.
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