OKX isn't just for trading—it also offers crypto-backed loans! This guide explores OKX's Crypto Loan feature, where users can collateralize their crypto holdings to borrow other cryptocurrencies. With flexible terms, multi-asset collateral support, and competitive interest rates, this service enhances liquidity for traders and investors. Below, we break down how it works, its risks, and key optimizations for smarter borrowing.
What Is OKX Crypto Loan?
OKX Crypto Loan is a lending service where users:
- Pledge crypto assets as collateral (up to 65% loan-to-value ratio).
- Borrow other cryptocurrencies (120+ supported coins).
- Pay hourly interest (variable rates: 1%–365% APY).
Key Features:
- Quick approval (no credit checks).
- Multi-collateral support (mix BTC, ETH, etc.).
- No platform fees (only interest applies).
| Parameter | Details |
|--------------------|----------------------------------|
| Min. Loan | ~$0.20 (varies by coin) |
| Collateral Ratio | Up to 65% LTV |
| Interest Model | Hourly floating rates |
Pros and Cons of OKX Crypto Loans
✅ Advantages
- Fast liquidity: Access funds without selling assets.
- Simple interface: Easy for beginners.
- Diversified collateral: Reduce single-asset volatility risks.
❌ Risks
- Liquidation risk: Positions close if LTV hits 97%.
- Variable rates: Interest spikes during market volatility.
- Platform risk: Centralized exchange vulnerabilities.
How to Borrow on OKX
Step 1: Register and Fund Your OKX Account
- Sign up and complete KYC.
- Deposit crypto to use as collateral.
Step 2: Navigate to "Finance" > "Loans"
- Choose between Single-Asset or Multi-Asset Collateral.
Step 3: Enter Loan Details
- Select collateral (e.g., ETH) and borrow currency (e.g., USDT).
- Adjust LTV for safety (lower LTV = lower liquidation risk).
Step 4: Confirm and Borrow
- Review terms and confirm. Funds are credited instantly.
Repaying Your Loan
- Go to "Finance" > "Loans".
- Select your active loan and click "Repay Now".
- Choose partial or full repayment.
Interest Rates and Collateral Ratios
- Interest: Displays as "24h APY" (check live rates under "Fee Schedule").
Collateral Ratio Tiers:
- Warning: 80% LTV (add collateral to avoid liquidation).
- Liquidation: 97% LTV (assets sold automatically).
Tip: Increase collateral to lower LTV and avoid liquidation.
FAQs
❓ What happens if my collateral’s value drops?
- You’ll need to add more collateral or repay part of the loan to maintain a safe LTV (<80%).
❓ Can I change my collateral after borrowing?
- Yes! Use "Adjust Collateral" to add/remove assets.
❓ Is there a fixed interest option?
- No, OKX loans use floating rates only.
Final Thoughts
OKX Crypto Loans offer low barriers to entry (some loans start under $1) and flexible terms. New users should start small to test the process before scaling up. Always monitor LTV and market conditions!
Disclaimer: Crypto loans carry risks. This guide is informational—always assess your risk tolerance.