How do I apply For Institutional Loan
What's Institutional Loan?
Institutional Loan offers you a secure, fixed-rate loan solution if you have large capital needs. Key benefits include fixed-term interest rates, up to 2.5x leverage without excess collateral, and risk independence to ensure your account's security.
The Institutional Loan is a new fixed-rate loan service with a 90-day loan term. During the loan period, you'll pay a fixed interest rate, provide you with stable funds. The loan amount will be directly added to your fund account balance, and the loan risk is measured based on the margin ratio within the risk unit, independent of your unified trading account without the need to lock up collateral, which provides you more flexibility.
Once your order is confirmed, the total interest will be considered a liability, and your ability to withdraw will depend on the required margin ratio.
How do I apply Institutional Loan
Log in to your account at okx.com and go to Grow > Loan > Institutional loan.
Note: you can check the Current Annualised Rate, Term, and Maximum Borrowing Amount at the Institutional Loan page.
Navigate to Grow and select Institutional loan
You can enter your desired borrowing amount and select Borrow Now to proceed.
Enter your desired borrowing amount to proceed
The confirmation order page will display the estimated total interest based on the current annualised rate. You can also set the 'maximum annualised rate', which represents the highest rate you're willing to accept. If the market's annualised rate exceeds your specified limit, the unfulfilled portion of your order will automatically stop running.
Note: once your loan order is confirmed, it'll split the total loan amount into a few sub-orders and assign them to the depositor. The depositor will deposit according to the loan sub-order. Once the sub-order is fully funded, the funds will be transferred to your account.
Check the details on the Confirmation order page and select confirm to proceed
How do I view and manage my loan orders?
Go to 'My borrowed assets' or 'View loan details' to place your order.
Select 'My borrowed assets' or 'View loan details' to place order
Select the sub-order to check its current fundraising progress and make adjustments as needed, such as updating the 'maximum annualised rate' or canceling the order entirely.
Select the sub-order to check details and make adjustments
FAQs
How do I monitor risks?
Institutional lending risks are managed through the Margin Ratio (MR), an independent metric separate from the unified trading account.
What is my maximum loan amount?
The maximum loan amount you can borrow is determined by two factors:
The amount needed to maintain the Initial Margin Ratio (IMR) after borrowing.
The platform's borrowing limit.
The final loan amount will be the lower value of these two factors.
How is my loan interest calculated?
Institutional loan interest is fixed for the entire term and is calculated using the formula:
Loan Amount x APR x Term ÷ 365
If repayment is delayed, overdue fees will apply on an hourly basis during the grace period.
Can I withdraw the loan amount?
Yes, you can withdraw the loaned funds, but the maximum withdrawal is capped at 40% of the MR.
When will interest be charged on my loan?
The interest and principal are due on the repayment date. No interest will be deducted from your account before that.
Do I need to pay any additional fees for institutional Loan?
No, the only cost is the interest, which is directly transferred to the lender. No other fees are required.