Dear valued customers,
We will update the TRON (TRX) perpetual swap price limit rules and funding rate, and the spot margin trading interest rate from Jan 28, 2019 (CET, UTC+1) due to the recent volatility of the spot index and the contract price. Details are as follows:
1.Tron (TRX) Perpetual Swap
1.Funding Rate
2.Price Limit Rules
Current:
First 10 minutes of all newly listed contracts:
Upper Limit = Spot Index Price x (1 + 0.5%)
Lower Limit = Spot Index price x (1 - 0.5%)
After 10 minutes:
Upper Limit = Average Basis within last 10min + Spot Index Price x (1 + 2%)
Lower Limit = Average Basis within last 10min + Spot Index Price x (1 - 2%)
Basis = Contract Price - Spot Price
If the price limit deviates from the Spot Index Price by 5% or is below 0:
Upper Limit = Spot Index Price x (1 + 5%)
Lower Limit = Spot Index Price x (1 - 5%)
Open long or close short position:
An order would be blocked if the order price sent is higher than the price limit.
Open short or close long position:
An order would be blocked if the order price sent is lower than the price limit.
The maximum / minimum price deviation limit will gradually increase to 10%：
3.Others
As the TRX BTT airdrop is approaching, it may cause volatility to the TRX spot and derivatives markets. We may implement the following measures, including but not limited to:
- i) increasing the price limit to approximately 25% three days before the airdrop
- ii) increasing the funding rate to approximately 1.5% three days before the airdrop
- iii) using the (contract best offer + best bid)/2 as the mark price, minimising the market impact by the volatile TRX spot index
4.The subject of OKX TRX Perpetual Swap is the TRX/USD index, excluding the BTT part. We will also distribute the BTT to users based on the TRX Perpetual Swap account equity at the airdrop time. In case of market volatility or inability to track the TRX/USD index, we may implement measures such as early delivery to minimize the overall market risk.
II. TRX/USDT, TRX/BTC Margin Trading
1.The interest rate of TRX margin trading will be adjusted at 15:00 Jan 28, 2019 (CET, UTC +1) as follows:
2.The liquidation margin ratio of TRX/USDT and TRX/BTC will be adjusted to 120% at 04:00 Feb 1, 2019 (CET, UTC +1)
3.After TRX snapshot:
- For users with outstanding TRX loan balance:
The BTT price will be included in the calculation of liability risk rate.
BTT price calculation:
- If BTT is listed on major exchanges, the price of BTT will be determined with the weighted latest trading price of the exchanges.
- If BTT is not listed on any major exchange，the price of BTT would be implied by available derivatives.
2. For users who have an outstanding loan balance of USDT or BTC, if forced liquidation happens, the BTT airdrop will be used for repayment before distribution.
3. In case of extreme market volatility, we may pause TRX spot margin trading or even force-closing of positions to minimize the overall market risk. Please stay tuned for further updates.
Regards,
OKX
