OKX to improve the funding fee mechanism for perpetual futures

Published on Jun 7, 2024Updated on Jun 10, 20246 min read

To provide you with a better experience and improve the efficiency of funding fee settlement, OKX will change the order cancellation logic during settlement for all perpetual futures in four phases. The calculation logic for funding rates will remain unaffected.

Before the change After the change
Collection of funding fees by platform When collecting funding fees, OKX would only collect these up till the liquidation threshold (i.e. where margin level is 100%).
Partial or full liquidation will be carried out thereafter if required.

Isolated margin mode
When the platform collects funding fees, it prioritizes deducting them from the transferable balance in the user's cross-margin account. In Multi-Currency and Portfolio margin mode, transferrable balance will include borrowed crypto if auto borrow is turned on.
If the transferable balance is insufficient, orders to open positions in isolated margin mode for this instrument will be canceled. Funding fees will then be collected from the margin of your isolated positions.

Single-currency cross margin mode
The platform will collect funding fees from the free margin of the cross account.
If the free margin is insufficient, pending orders that will use more margin will be canceled, including spot orders and orders to open positions in isolated and cross margin modes.

Multi-currency and Portfolio margin cross margin mode
The platform will collect funding fees from the adjusted equity of the multi-currency or portfolio margin account.
If equity is insufficient, pending orders that might reduce adjusted equity will be canceled, including spot orders and orders to open positions in isolated margin mode.
When collecting funding fees, OKX will collect the full amount of outstanding funding fee, even if this goes beyond the liquidation threshold (i.e. where margin level falls below 100%)
Partial or full liquidation will be carried out thereafter if required.

Isolated margin mode
Funding fee will be collected solely from the margin balance of your isolated positions, instead of the transferable balance in your cross-margin account.
Orders will not be canceled during collection
If the margin balance is insufficient, partial or full liquidation will be carried out thereafter if required.

Cross margin mode (Single-currency, Multi-currency, Portfolio margin)
Funding fee is collected from the cross margin equity.
Orders will not be canceled during collection.
If the cross margin equity is insufficient, partial or full liquidation will be carried out thereafter if required.
Distribution of funding fees by platform The actual amount of funding fees distributed by the platform is determined by the amount of funding fees the system can collect. If the amount of funding fees collected is less than expected (as shown on our platform), the amount distributed will be proportionate to the position value of users that are due to receive funding fees.

All funding fees received by users will be added to their cross margin equity, regardless of whether it's an isolated or cross position.
The platform will distribute the full amount to users during settlement.

Isolated margin mode
For isolated margin positions, the funding fee will be added into the margin balance of the position.

Cross margin mode (Single-currency, Multi-currency, Portfolio margin)
For cross margin positions, the funding fee will be added to their cross margin equity.

Affected futures:
Date and time: June 12, 2024, 6:00 am UTC
First phase: 5 perpetual futures

LINK-USD
LINK-USDT
LUNA-USDT
LUNC-USDT
SHIB-USDT

Date and time: June 17, 2024, 6:00 am UTC
Second phase: 32 perpetual futures

ALPHA-USDT SUI-USDT SWEAT-USDT FIL-USD
API3-USDT ICX-USDT T-USDT FIL-USDT
BADGER-USDT IMX-USDT THETA-USD
CRV-USD METIS-USDT THETA-USDT
CRV-USDT NEO-USD UMA-USDT
DOGE-USDT NEO-USDT WIF-USDT
DOGE-USD NFT-USDT DYDX-USDT
DOT-USD PEOPLE-USDT ETHFI-USDT
DOT-USDT PEPE-USDT CVC-USDT
SSV-USDT RVN-USDT STRK-USDT

Date and time: June 24, 2024, 6:00 am UTC
Third phase: 103 perpetual futures

AAVE-USDT CETUS-USDT GAL-USDT MAGIC-USDT RSR-USDT VRA-USDT
ACH-USDT CHZ-USDT GAS-USDT MASK-USDT SAND-USDT WOO-USDT
AGIX-USDT CORE-USDT GMT-USDT MATIC-USDT SAND-USD XLM-USD
AGLD-USDT CRO-USDT GMX-USDT MERL-USDT SLP-USDT XLM-USDT
AIDOGE-USDT CSPR-USDT GODS-USDT MKR-USDT SPELL-USDT XRP-USD
APE-USDT CTC-USDT GPT-USDT MSN-USDT STORJ-USDT XRP-USDT
AR-USDT EGLD-USDT ICP-USDT NMR-USDT STX-USDT XTZ-USDT
ATOM-USD ENS-USDT INJ-USDT NOT-USDT SUSHI-USD YFI-USD
ATOM-USDT EOS-USD IOST-USDT OM-USDT SUSHI-USDT YFI-USDT
AXS-USDT EOS-USDT IOTA-USDT OMG-USDT TIA-USDT ZERO-USDT
BAT-USDT ETHW-USDT JTO-USDT ONT-USDT TRB-USDT ZETA-USDT
BCH-USD FITFI-USDT JUP-USDT ORBS-USDT TRX-USD ZK-USDT
BCH-USDT FLOW-USDT KISHU-USDT ORDI-USDT TRX-USDT ZRX-USDT
BNB-USDT FLR-USDT KLAY-USDT PERP-USDT TURBO-USDT
BNT-USDT FOXY-USDT KNC-USDT QTUM-USDT UNI-USD
BONE-USDT FRONT-USDT LOOKS-USDT RACA-USDT UNI-USDT
BONK-USDT FTM-USDT LPT-USDT RDNT-USDT USDC-USDT
CELO-USDT FXS-USDT LQTY-USDT RNDR-USDT USTC-USDT

Date and time: July 1, 2024, 6:00 am UTC
Fourth phase: 87 perpetual futures

1INCH-USDT BLOCK-USDT FET-USDT LTC-USDT SOL-USDT
1INCH-USD BLUR-USDT FLM-USDT MANA-USDT SOL-USD
ACE-USDT BSV-USD FLOKI-USDT MANA-USD STARL-USDT
ADA-USD BSV-USDT GALA-USDT MEME-USDT TNSR-USDT
ADA-USDT BTC-USD GFT-USDT MEW-USDT TON-USDT
AEVO-USDT BTC-USDT GLM-USDT MINA-USDT VELO-USDT
ALGO-USD BTC-USDC GRT-USDT MOVR-USDT VENOM-USDT
ALGO-USDT CEL-USDT GRT-USD NEAR-USDT W-USDT
ANT-USDT CFX-USDT HBAR-USDT ONE-USDT WAXP-USDT
APT-USDT COMP-USDT ID-USDT OP-USDT WLD-USDT
ARB-USDT DGB-USDT JOE-USDT OP-USD XCH-USDT
AUCTION-USDT DMAIL-USDT JST-USDT PRCL-USDT YGG-USDT
AVAX-USDT ENJ-USDT KSM-USDT PYTH-USDT ZENT-USDT
AVAX-USD ETC-USD KSM-USD RAY-USDT ZEUS-USDT
BAL-USDT ETC-USDT LDO-USDT REN-USDT ZIL-USDT
BAND-USDT ETH-USD LRC-USDT RON-USDT
BICO-USDT ETH-USDT LSK-USDT SATS-USDT
BIGTIME-USDT ETH-USDC LTC-USD SNX-USDT

After the fourth phase on July 1st, all perpetual futures (including any not listed above or newly listed ones) will follow the new funding rate mechanism.

Thank you for your continued support. We appreciate your trust in us and assure you of our best services at all times.

OKX team
June 7, 2024