P2P Loan FAQ

I. Frequently asked questions for borrowers

1. How to calculate the loan interest?
The loan interest is calculated based on the calendar day (UTC+8). The interest will be calculated on the day of successful borrowing until the repayment date (the interest will be calculated for one day if it is less than one day).

2. When should I pay the loan interest after a successful borrowing?
The principal and interest are paid upon repayment.

3. How to repay?
Find the ongoing loan in the Loan page, and click "Repay".

4. Will there be a penalty for early repayment?
Early repayment penalty = loan amount * daily interest rate * (planned investment days-actual investment days) * 50%

5. What should I do if the loan is overdue? How to calculate interest after overdue?
If you’re late on loan repayments, the interest will be calculated at 110% of the agreed interest. The position will be automatically closed at 24:00 on the third calendar day (UTC+8) after the expiry date. Principal and interest will be returned to the lender, and the remaining funds will be returned to the borrower.
Remaining funds = collateral amount * closing price-borrow amount * daily interest * borrow days-borrowing amount *overdue days * daily interest * 110%

6. What price does the liquidation refer to?
Take the index price as a reference to avoid a liquidation caused by a significant deviation in the price of a certain exchange.

7. Will the remaining funds be returned after the liquidation?
After the liquidation, the remaining funds will be injected into the insurance fund to cover the possible bankruptcy loss.

8. What should I do if there is a bankruptcy loss caused by forced liquidation due to sharp price fluctuation of collaterals?
Due to severe price fluctuations, if the system cannot liquidate a position, or if the borrowed asset and related interest cannot be returned after the forced liquidation, the system will use the insurance fund to cover the bankruptcy loss. If the insurance fund is not enough to cover the loss, OKX will reserve the right to claim compensation from you.

9. When part of the fundraising is successful, how to deal with the excess collaterals?
The system will end the fundraising ahead of schedule, recalculate the actual amount of collaterals required, and return the remaining part to the borrower.

II. Frequently asked questions for investors

1. Is there any risk in the P2P loan principal?
No. The borrower will pledge the digital currency whose amount is greater than the loan amount. The platform will process the collateral when the price fluctuates sharply or the loan is overdue to return the investor's principal and interest.

2. After the loan advertisement is placed, when will the interest begin to accrue?
After the fundraising is successful, interest will be calculated according to calendar days(UTC+8).

3. After the funds are successfully lent, when can I receive the interest?
The interest will be paid upon repayment.

4. Can I get back the investment funds in advance?
No. You can only get back your investment when the borrower actively or passively ends the loan.

III. Anything else

1. The main formulas for Loan
a. Forced liquidation= [currency price/ (margin ratio+1)] *(1+(1- blow up pledge rate)
note: margin ratio= [collateral amount * currency price - (borrow amount+total interest)] /borrow amount
b. Loan interest= loan amount * daily interest rate * loan days
c. Overdue interest= loan amount * daily interest rate * 110% * days in default (calculated according to calendar days (utc+8), and less than one day is regarded as one day)
d. Required collateral= (borrow amount+ total interest)/ (pledge rate * current price of collateral)

2. Digital assets service agreement
https://www.OKX.com/support/hc/zh-cn/articles/360040494852