To improve trading efficiency and user experience, OKX is implementing a phased upgrade to its funding fee settlement system for perpetual futures contracts. This comprehensive update modifies order cancellation logic while maintaining the existing funding rate calculation methodology.
Key Changes to Funding Fee Mechanism
The platform is transitioning from its previous collection and distribution methods to a more streamlined approach:
Funding Fee Collection Updates
| Aspect | Previous Method | New Method |
|---|---|---|
| Collection Threshold | Collected up to liquidation threshold (100% margin level) | Full amount collected regardless of threshold |
| Isolated Margin Mode | Deducted from cross-margin transferable balance first, canceled orders if insufficient | Directly from isolated position margin, no order cancellations |
| Cross Margin Modes | Various collection methods across different margin types | Uniform collection from cross margin equity without order cancellations |
Funding Fee Distribution Improvements
| Component | Previous Method | New Method |
|---|---|---|
| Distribution Amount | Proportional to collected fees | Full expected amount distributed |
| Isolated Positions | Added to cross margin equity | Added directly to position margin balance |
| Cross Margin Positions | Added to cross margin equity | Maintained in cross margin equity |
Phased Implementation Schedule
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Phase 1: June 12, 2024 (5 contracts)
- LINK-USD, LINK-USDT
- LUNA-USDT, LUNC-USDT
- SHIB-USDT
Phase 2: June 17, 2024 (32 contracts)
Includes major pairs like:
- DOGE-USD/USDT, DOT-USD/USDT
- PEPE-USDT, WIF-USDT
- ETHFI-USDT, STRK-USDT
Phase 3: June 24, 2024 (103 contracts)
Notable additions:
- AAVE-USDT, APE-USDT
- MATIC-USDT, XRP-USD/USDT
- SOL-USDT, UNI-USD/USDT
Phase 4: July 1, 2024 (87 contracts)
Final group featuring:
- BTC-USD/USDT/USDC
- ETH-USD/USDT/USDC
- AVAX-USD/USDT, SOL-USD/USDT
Key Benefits of the New System
- Simplified Margin Management: Clearer rules for isolated vs. cross margin positions
- Predictable Settlements: Full funding fee distribution regardless of collection status
- Reduced Order Cancellations: Eliminates unnecessary order cancellations during settlements
- Uniform Treatment: Consistent rules across all margin account types
FAQ Section
How will this affect my existing positions?
All open positions will automatically transition to the new mechanism during their respective implementation phases without requiring any action from traders.
Will funding rates change under this new system?
No, the calculation methodology for funding rates remains unchanged—only the collection and distribution processes are being modified.
What happens if my margin balance is insufficient?
The system will proceed with partial or full liquidation as needed, similar to the current process but with more transparent rules.
Are newly listed perpetual futures included?
Yes, all perpetual futures contracts (including future listings) will follow the new mechanism after July 1, 2024.
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Conclusion
This strategic upgrade demonstrates OKX's commitment to improving derivative trading infrastructure while maintaining market fairness. The phased approach allows traders to adapt gradually while ensuring all perpetual contracts benefit from enhanced settlement efficiency by July 2024.
For optimal trading experience, we recommend reviewing your margin management strategies in light of these changes, particularly if you maintain isolated margin positions across multiple perpetual contracts.
OKX continues to innovate its trading platform to provide professional-grade services for all users worldwide.