Updates to VIP Loan and Credit Line Risk Unit Terms and Conditions

OKX will update the liquidation methodology that applies to Risk Units. This affects our users who subscribe to VIP Loan and Credit Line arrangements with us.

The update will roll out in stages commencing from 20 May 2026. Your OKX Relationship Manager will reach out to you with more details of when the update will be applied to you.

We are making this change to give VIP Loan and Credit Line users greater protection during periods of market stress. The updated methodology introduces a staged approach to liquidation that prioritises reducing your risk exposure before resorting to a forced liquidation of your collateral, giving the process more time to work in an orderly manner, preserving more of your portfolio value where possible, and reducing the risk of unnecessary or disruptive liquidation. The new approach is designed to work in your interest: where market conditions allow, the new liquidation engine methodology will seek to stabilise your position by returning your loan position to a safe margin ratio with a mix of delta-reduction and partial repayment strategies without a full termination of the loan and without a full liquidation of collateral.

These changes will apply automatically to all existing and new VIP Loan and Credit Line accounts after the update is applied to you. By continuing to hold a VIP Loan or Credit Line after the update is applied to you,, you accept the updated Risk Unit Terms.

What's changing

Current: The current liquidation process proceeds directly to forced asset transfer when the Margin Ratio (MR%) of a Risk Unit falls to or below 15%.

New: The updated process will operate in two stages, intended to reduce the total value loss during a liquidation scenario by utilizing a delta-reduction methodology before proceeding to actual asset liquidation. This new two-stage methodology applies to Risk Units securing a liability denominated in USDT or USDC only.

Key points to note

The objective of the new two-stage liquidation methodology is to focus on restoring safe collateral levels in a controlled manner, instead of full liquidation or repayment. Both new stages are designed to restore MR% to a safe level — they do not necessarily repay your outstanding liabilities in full. If any liability remains after the process completes, you remain responsible for that amount and it will continue to be shown on the platform.

Eligibility for the two-stage process. The updated methodology applies to accounts where outstanding liabilities are denominated in USDT or USDC, and where no options positions are held in the Risk Unit at the time of trigger. Accounts that do not meet these conditions will continue to be processed under the existing liquidation methodology. OKX intends to extend the updated methodology to additional liability currencies in a future update.

Stage 1 uses close/sell orders in your own accounts. During Stage 1, OKX will place reduce-only orders on your behalf within your own accounts within the Risk Unit to lower your net delta exposure. No new positions will be opened. By continuing to utilise our VIP Loan and Credit Line services after this update is applied to you, you consent to OKX carrying out such actions through your Risk Unit account in a liquidation scenario.

Deposits during Stage 1 may stop the liquidation process early. If you deposit collateral during Stage 1 and your MR% recovers above the applicable exit threshold as a result, the liquidation process will exit and your accounts will be unfrozen. This does not apply during Stage 2 — just like in the current system, deposits made during Stage 2 do not affect MR% calculation for the purposes of that stage.

The 8% Forced Liquidation trigger is new. Under the current methodology, a single liquidation trigger applies at MR% ≤ 15%. Under the updated methodology, if MR% falls directly to or below 8% (for example due to rapid market movement), Stage 2 Forced Liquidation will be triggered directly, without Stage 1 first being applied.

Asset disposal order under Stage 2. Assets are transferred in the following priority order: stablecoins and fiat currencies first, followed by lower-liquidity altcoins, then major cryptocurrencies in descending order of liquidity. Funding accounts are processed before trading accounts.

What's not changing

• Margin Ratio thresholds for account opening (IMR%), withdrawal restrictions (Withdrawal MR%), and Margin Call notifications remain unchanged.

• The amendments do not increase your risk of liquidation of collateral compared to the legacy methodology. Conversely, the MR% thresholds, below which forced liquidation of assets are triggered, either remain the same or are lowered following the amendments.

• The Margin Call notification at MR% ≤ 40% continues to apply. Upon receiving a Margin Call, you have the opportunity to top up collateral or reduce liabilities to avoid the liquidation process being triggered.

• Delta limit monitoring and restrictions, options trading restrictions, and other risk parameters described in the Risk Unit Terms remain unchanged.

• The legacy liquidation methodology continues to apply to accounts that are not eligible for the updated two-stage process (see Eligibility For the Two-Stage Process above).

What you should do

We recommend reviewing the updated Risk Unit Terms set out below which will replace the existing risk unit terms here: Forced Loan Repayment, Credit Line Liquidation and Risk Unit Terms and Conditions, after the update has been rolled out to all users.

You should ensure you are familiar with the two-stage process, the applicable trigger and exit thresholds, and how the partial repayment mechanism works, before they come into force.

You are responsible for monitoring the MR% and net delta of your Risk Unit and for maintaining sufficient collateral to reduce the risk of liquidation being triggered. We recommend maintaining MR% well above the applicable thresholds, particularly during periods of heightened market volatility.

If you have questions about how these changes affect your account, please contact your OKX account manager or reach out to our support team. Our Relationship Managers will reach out to you to inform you separately on when these new terms will apply to you.

NEW RISK UNIT TERMS

The New Risk Unit terms set out below are not yet in force as the date of this announcement, and are set out here for reference purposes only. They will gradually by rolled out to apply to existing VIP and Credit Line users commencing from 20 May 2026. Your Relationship Managers will reach out to you to give you advance notice of when and if these terms will apply to you.

1. Risk Units Overview

When applying for our Credit Line or VIP Loan or products, borrowers are required to nominate certain of their account(s) as "Risk Units" for purposes of risk management. This article describes Risk Units and the other mechanisms (Forced Loan Repayment / Credit Line Liquidation) that may apply in relation to Risk Units.

2. Application

As at the date of publication of this article, the mechanisms referred to in this document apply to the following products / services, which may be updated by OKX at any time at its sole discretion:

3. Nominating a Risk Unit

When applying for Credit Line or VIP Loan products from OKX, borrowers are required to nominate any number of their main and sub-accounts (or no sub-accounts) to form a cluster called a Risk Unit. Borrowers can choose whether or not to include their main account in the Risk Unit; if they do, then the main account would be the operative account where the Creditline / VIP Loan services are provided. In the event that borrowers do not choose to include their main account in the Risk Unit, they may choose to treat a sub-account as the delegated main account where the Creditline / VIP Loan service are provided. Each of the main / sub-accounts can only be part of one Risk Unit. In the absence of a selection of Risk Unit composition, the Main and all eligible sub-accounts are selected to form the Risk Unit. Borrowers can form multiple Risk Units, for different Creditline / VIP Loan service orders, subject to overall risk management requirements applicable in each case. OKX monitors the overall risk level of each loan or line of credit by reference only to the nominated Risk Unit. Margin Ratios are calculated by reference to the assets in the Risk Unit. You can change the sub-accounts of a Risk Unit, provided the Margin Ratio, delta limits, and other relevant parameters meet required thresholds.

Borrowers are responsible for managing the risk levels of the accounts within their Risk Unit.

4. Forced Loan Repayment / Credit Line Liquidation Mechanism

Margin Ratio

The risk monitoring mechanism for a Risk Unit works by reference to a margin ratio percentage (MR%).

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Note: For Fiat, we support "EUR", "USD", and "BRL" as collateral to calculate discount asset value into MR% for the corresponding entity. OKX is planning to iterate more fiats as eligible collateral and liability in the future.

Liquidation process of fiat is the same as other cryptocurrency, following the forced loan repayment mechanism.

Risk management

As a borrower, certain margin ratios will be notified to you. The margin ratio from time to time determines whether the assets in your Risk Units are at risk of liquidation.

The abovementioned ratios will be determined on a case-by-case basis for each borrower based on their trading strategies, type of loan product required, expected equity and risk evaluation.

We generally adopt 3 different categories of ratio requirements as described below based on our assessed risk profile for the particular product and particular borrower. OKX reserves the right to adjust one or more of the applicable ratio requirements at any time, on a case-by-case basis, and in OKX's full discretion:

The above rules apply unless otherwise stated in any agreement between you and OKX.

For VIP Loan borrowers, the MR% is updated periodically and can be viewed on the OKX Platform or pulled through the API interface.

For Credit Line users, the MR% is updated periodically and can be pulled through the API interface.

Note: Discount Rate refers to the value attributed to an asset (including fiat and digital asset) when used as collateral (including within a Risk Unit). It is specified here and can vary based on quantity (this being the Discount Tier). OKX reserves the right to adjust the Discount Rate and Tier for any specific asset based on prevailing market conditions, without prior notice to the Customer. Additionally, OKX has the right to determine the attributable value of any collateral, including eligible fiat, using a market fiat exchange rate selected solely by OKX.

Liquidation Process (Forced Loan Repayment and Credit Line Liquidation)

When the MR% of a Risk Unit is equal to or lower than the applicable liquidation MR (which is typically 15% unless otherwise communicated), a liquidation process is triggered as described in these Terms.

For VIP Loan, the liquidation process is referred to as Forced Loan Repayment, (note that this is different to the forced repayment that can be triggered as a result of negative balances existing or platform limits being met); for Credit Line, the liquidation process is referred to as Credit Line Liquidation).

In the event the same Risk Unit is designated for both a VIP Loan and a Credit Line taken on by the borrower, if both a Forced Loan Repayment and a Credit Line Liquidation is triggered at the same time, OKX will generally prioritise applying the assets towards repaying the VIP Loan over repayment of the Credit Line.

2-Step liquidation process:

Account Freeze

When MR% falls to or below the Liquidation Margin Ratio (default is set at 15%), all accounts and sub-accounts within the Risk Unit are immediately frozen. The account freeze applies throughout all steps of the liquidation process.

During the freeze: (a) trading (including placing new orders and closing existing positions by the user), withdrawals, and internal transfers are suspended; (b) deposits (top-ups) continue to be permitted.

For accounts with liability denominated in USDT or USDC, the accounts will be subject to a 2-step liquidation process described below. For all other accounts, Step 1 will be skipped and the liquidation process will directly proceed to Step 2.

A summary of the account freeze conditions is indicated below:

Step 1 - Soft liquidation (Applies when Margin Ratio is between the Liquidation Margin Ratio and 8%)

Step 1-1 Delta Reduction

The platform system will place close-only and sell-only limit orders within your own accounts (not the platform system account) to reduce the Risk Unit's net directional market exposure ("net delta"). The system will not open any new positions. Orders are placed at prices close to the prevailing index or mark price and are refreshed every five seconds if unfilled. The system prioritises assets contributing most to net delta and processes up to five sub-accounts per cycle, in order of their delta contribution. Assets are selected for sale in the following order of open orders (if applicable): USDT-margined perpetuals, coin-margined perpetuals, spot assets, futures (nearest expiry first), and margin borrowings, with the highest delta position in each category being closed at a higher priority before lower delta positions . Stablecoins holdings (USDT/USDC) are excluded from the delta-reduction process.

Step 1-2 — Soft Partial Repayment

If, after delta reduction is carried out, MR% remains below 25%, the system will perform a partial repayment using only non-delta-increasing assets (i.e., USDT, USDC, and fiat currencies). The repayment amount is calculated to restore MR% to at least 25% — not to repay the full outstanding liability. The liquidation engine will prioritise partial liquidation of high-balance accounts to reduce the risks of individual accounts dropping below their individual margin requirements.

Step 1 Recovery Conditions

Step 1 will exit and your Risk Unit will cease to be in a liquidation scenario if, the liquidation engine is able to restore your MR% to at least 25% within 5 minutes of the liquidation mechanism being triggered. Otherwise, Stage 2 (Forced liquidation) will proceed.

Step 2 — Forced Liquidation

Step 2 is triggered if any of the following occurs:

Step 2-1 — Forced Partial Repayment

The platform system account will forcibly liquidate assets from your accounts in your Risk Unit to repay outstanding loan obligations and increase the MR% to at least 30%. Top-ups (deposits) continue to be permitted during Stage 2 but do not affect the MR% calculation during this stage and will not cause early termination of Stage 2.

Assets are liquidated in the following priority order: (1) stablecoins and fiat currencies; (2) lower-liquidity altcoins; (3) major cryptocurrencies (in descending order of liquidity). Funding accounts are processed before trading accounts. The liquidation engine will arrange the liquidation to reduce the risks of individual accounts dropping below their individual margin requirements.

Concurrent Step 2-2 — Delta Reduction During Forced Repayment

Simultaneously with Step 2-1, the system continues to reduce net delta by placing close-only limit orders in your trading accounts, using the same method as Step 1-2.

Stage 2 Exit Conditions

Stage 2 will exit and your accounts will be unfrozen when either: (a) MR% exceeds 30%; or (b) the full outstanding liability has been repaid.

5. Fees

A liquidation fee is charged for the expenses inccured by the liquidation process, as follows:

Stage 1 (Soft Liquidation): a standard taker fee at the borrower's current fee tier, applied to the value of assets successfully closed or sold;

Stage 2 (Forced Liquidation): a 2% liquidation penalty fee, a buffer amount to cover slippage, and a taker fee, based on the total amount of assets that have successfully been liquidated.

The fee rates applicable at the time of liquidation are those in force at the moment the relevant stage is triggered.

Any residual assets remaining after all liquidation processes and fees are complete will be repaid to the user's main funding account.

6. Illustrative Example

The figures below are illustrative only, intended to explain the mechanics of the Forced Loan Repayment / Credit Line Liquidation process. Actual outcomes will depend on market conditions, the composition of the Risk Unit, and applicable parameters configured by OKX.

Example - Initial State — Before Market Move

A VIP Loan borrower's Risk Unit holds:

The Risk Unit's assets include USDT in the funding account, spot holdings in BTC/ETH/altcoins, and long positions in BTC-USDT and ETH-USDT perpetuals.

Example - Market Event

The crypto market drops sharply. The Risk Unit's discounted equity falls to 5,650,000 USD. MR% drops to 13%, below the 15% Liquidation MR% threshold.

Step 0 — Account Freeze

All accounts in the Risk Unit are immediately frozen. Trading, withdrawals, and internal transfers are suspended. Deposits remain permitted and will affect MR% during Step 1.

Scenario A — Step 1 Soft Liquidation (Recovered)

Step 1-1 — Delta Reduction

The system places close-only limit orders in the borrower's own accounts to reduce Net Delta. Orders are placed at prices close to the prevailing mark/index price and refreshed periodically. Stablecoin holdings (USDT/USDC) are not involved in this step.

Net Delta has been meaningfully reduced, but MR% remains below 25%.

The system proceeds to Step 1-2.

Step 1-2 — Soft Partial Repayment

Using only non-delta-increasing assets (USDT, USDC, fiat), the system partially repays the loan. The repayment amount is calculated to restore MR% to at least 25% — not to repay the full loan.

Required partial repayment: 2,600,000 USDT

Step 1 Recovery ✓

MR% has recovered above 25%. The Risk Unit exits liquidation. Accounts are unfrozen. The borrower retains their remaining positions and has an outstanding loan of 2,400,000 USDT.

A Stage 1 taker fee is charged on the value of assets sold/closed.

Scenario B — Step 2 Forced Liquidation

Assume, instead, the market move is more severe, such that after the Step 0 freeze the MR% has already fallen to 7% — below the Step 2 trigger threshold of 8%. Step 1 is bypassed and the system proceeds directly to Step 2. (Step 2 would also apply if the Step 1 recovery conditions were not met within 5 minutes.)

State at Step 2 Trigger:

Step 2-1 — Forced Partial Repayment

The platform system account forcibly liquidates assets from the borrower's accounts to repay the loan and restore MR% to at least 30%. Assets are sold in the following order of liquidity:

(1) stablecoins and fiat;

(2) lower-liquidity altcoins;

(3) major cryptocurrencies (most liquid last).Funding accounts are processed before trading accounts. Within each account, the system respects safety floors (IMR% → MMR% tiers) to avoid leaving any single account dangerously under-collateralized in one step. Required forced repayment to reach MR% ≥ 30%: approximately 3,650,000 USDT equivalent.

Step 2-2 — Concurrent Delta Reduction

Simultaneously, the system continues to reduce Net Delta via close-only limit orders in the trading accounts. Target: the lesser of

(a) the platform-wide delta limit and

(b) 30% of the Net Delta recorded at the time Step 2 was triggered.

Result:

Step 2 Exit ✓

MR% has risen above 30%. Accounts are unfrozen. The borrower retains a reduced portfolio and a remaining loan balance of 1,350,000 USDT.

Step 2 fees apply: a 2% liquidation penalty, a buffer amount for slippage, and a taker fee, all applied to the value of assets liquidated.

Notes

1. Top-ups (deposits) are permitted throughout the freeze but only count toward MR% during Step 1 — not during Step 2.

2. If the full outstanding liability is repaid before MR% reaches 30% in Step 2, the process ends at that point and accounts are unfrozen.

3. Any residual assets remaining after the process completes are returned to the borrower's main funding account.

4. If an individual account within the Risk Unit is already subject to unified-account liquidation (under standard margin rules), Forced Loan Repayment / Credit Line Liquidation will not be applied to that specific account.

Forced Loan Repayment / Credit Line Liquidation is complete when the Total Liability of the Risk Unit is fully repaid or the MR% rises above 30%, whichever is earlier. Once such conditions are fulfilled, then the accounts / sub-accounts within the Risk Unit are automatically unfrozen. However, if that Total Liability is not fully repaid, then the accounts / sub-accounts will continue to be frozen. If there continue to be liabilities in the Risk Unit after liquidation process has stopped, this will be shown on the Platform, and the user will continue to be liable for such amount. OKX reserves all rights to recover any outstanding amounts remaining after the conclusion of the liquidation process.

7. Delta Limit & Restrictions

To mitigate the overall risks associated with the value of the Risk Unit, OKX will impose Net Delta and Gross Delta limits on each Risk Unit. Before granting a borrowing limit, OKX and the client must mutually agree on the delta limits and other relevant parameters.

When the delta of a risk unit approaches the delta limit, an alert will be triggered. If the delta exceeds a specified threshold and is not reduced below that level, withdrawal, transfers and other trading restrictions from the Risk Units may be triggered.

OKX reserves the right to vary its methodology of calculating delta at any time in its sole discretion.

Delta Calculation

Delta of each Token (USD value)

Delta calculation of each token:

Funding account equity + Trading account net equity* + Derivatives Delta*

Note:

• Trading account net equity includes assets and liabilities across both cross and isolated positions, as well as unrealized P/L, options market value, etc.

• Derivatives delta accounts for perpetuals, futures and options.

• All delta values are denominated in USD.

• A positive delta indicates a long position in the token, while a negative delta indicates a short position.

• BETH is considered equivalent to ETH, and OKSOL is considered equivalent to SOL when calculating delta.

Net Delta

The Net Delta of a risk unit is the sum of the delta values of all tokens within that unit:

1. Calculate the delta of each token across all accounts in the risk unit.

2. Aggregate delta values of the same token across different accounts.

3. Sum the delta values of all tokens (excluding USDT, USDC, USD).

Gross delta

The Gross delta of a risk unit is the sum of the absolute delta values of all tokens within that unit:

1. Calculate the delta of each token across all accounts in the risk unit.

2. Aggregate delta values of the same token across different accounts.

3. Sum the absolute delta values of all tokens (excluding USDT, USDC, USD).

Calculation Example

In the case below

Net Delta = -5,000,000 + 10,000,000 = 5,000,000

Gross Delta = 5,000,000 + 10,000,000 = 15,000,000

Delta Limit & Borrow Limit

Each Risk Unit will have predefined delta limits, covering both Net Delta and Gross Delta and a borrowing limit. These limits are determined by OKX based on, among others, the client’s trading strategy, expected equity, and applicable margin ratio requirements.

Example:

Delta and borrow limits are set based on the client's expected committed equity within the risk unit. If actual equity deviates significantly from the expected value, limits may be adjusted downward.

If holding equity is more than equity minimum requirement, there is delta Limit Buffer = Max(0, current Equity- Expected Equity)

The current delta limits, delta limit buffer and latest available delta values for each risk unit can be retrieved via API.

Delta Warning & Restrictions

Please note that if either the Gross Delta or the Net Delta falls into the specified warning or restriction thresholds, the corresponding warning or restrictions will be triggered accordingly.

8. Restrictions on Option Trading

For VIP Loan users, only accounts with no option positions will be allowed to be added to risk units. Similarly, all accounts within existing risk units will be restricted from options trading.

9. Other risk parameters monitoring

In addition to the margin ratio and delta limit requirements, OKX will monitor various other risk parameters for each risk unit to evaluate its overall risk level. If a portfolio is deemed high risk, the OKX team will contact the client to implement risk mitigation measures. Should the parties fail to reach an agreement or if the risks continue to escalate, OKX reserves the right to reduce borrowing limits or recall the loan immediately.

The parameters monitored by OKX include, but are not limited to:

10. Warnings, alerts, and notifications

While OKX will take measures to notify you whenever your applicable deltas or margin ratios exceeds the applicable warning levels, or upon the occurrence of any liquidation or restrictions being applied (including but not limited to email notification, phone calls, site message notification, etc.), you may not have the opportunity to receive such notifications in a timely manner. In times of larger market fluctuations, where the valuation of the assets in your Risk Unit or the liabilities it secures may change rapidly, or at times where there are technical delays with notification services on the Platform, it is possible that you do not receive any notifications prior to any actions (such as liquidation or trading freezes) being automatically executed. Users are ultimately responsible for monitoring their delta and MR, which is periodically updated, to ensure that they are within safe limits to reduce the risks of liquidation, margin calls, or trading freezes in the event of market fluctuations. Users are encouraged to maintain healthy collateral in excess of the required minimums to reduce the risks of liquidation or other restrictions being imposed on their Risk Units.