Dear OKX Users,
To enhance liquidity in the delivery/perpetual contract markets and ensure perpetual contracts better anchor to spot index prices, OKX will implement optimizations to the price limits and funding rate rules for perpetual contracts. These changes will take effect on October 16, 2020, at 16:00 (HKT) (the first adjusted rate will apply at the October 17, 8:00 (HKT) settlement). Additionally, adjustments to the price limit rules for delivery contracts will be enforced on October 22, 2020, at 17:00 (HKT). Details are as follows:
1. Price Limit Rules
Price Limit Calculation Formula
| Phase | Upper Price Limit | Lower Price Limit |
|---|---|---|
| First 10 minutes post-creation | Index × (1 + X) | Index × (1 − X) |
| After 10 minutes | Min[Max(Index, Index × (1 + Y) + 10m premium avg), Index × (1 + Z)] | Max[Min(Index, Index × (1 − Y) + 10m premium avg), Index × (1 − Z)] |
Adjusted Parameters (X, Y, Z)
Delivery Contracts
| Contract Type | Coin(s) | X | Y | Z |
|---|---|---|---|---|
| USDT & Coin-Margined (Weekly/Bi-weekly) | All coins | 5% | 4% | 15% |
| USDT & Coin-Margined (Quarterly/Bi-quarterly) | All coins | 5% | 6% | 25% |
Note: Weekly contracts reduce Z to 1% 30 minutes pre-delivery.
Perpetual Contracts
| Tier | Coins (Examples) | X | Y | Z |
|---|---|---|---|---|
| Tier 1 | BTC, ETH, LTC, XRP, EOS, DOT | 2% | 2% | 5% |
| Tier 2 | DOGE, ADA, ATOM, UNI, YFI | 4% | 4% | 8% |
| Tier 3 | CRV, FIL, SUSHI | 6% | 6% | 15% |
2. Funding Rate Rules
Funding Rate Formula
Funding Rate = Clamp[MA((Midpoint − Index) / Index − Interest), a, b]
(Interest is currently 0)
Adjusted Parameters (a, b)
| Coin | a | b |
|---|---|---|
| BTC | -0.375% | 0.375% |
| Others | -0.75% | 0.75% |
FAQ
Q1: Why is OKX adjusting these rules?
A1: To improve market liquidity and ensure perpetual contracts maintain tighter alignment with spot prices.
Q2: When do the new funding rates take effect?
A2: The first adjusted rate applies at the October 17, 8:00 (HKT) settlement.
Q3: Are there different limits for weekly vs. quarterly delivery contracts?
A3: Yes. Quarterly contracts have higher Z values (25%) compared to weekly contracts (15%).
👉 Explore OKX’s advanced trading tools to leverage these updates for your strategy.
OKX remains committed to delivering exceptional products and services.
October 14, 2020 (HKT)
### **Key Adjustments**
- **Price Limits**: Tighter bounds for perpetual contracts (e.g., BTC’s Z reduced to 5%).
- **Funding Rates**: BTC’s rate capped at ±0.375%; other coins at ±0.75%.