Starting in early 2025, OKX is rolling out a significant upgrade to its Portfolio Margin Mode, enhancing risk management, improving capital efficiency, and introducing new safeguards for traders. These changes will be fully implemented by January 21, 2025, with simulation testing available ahead of time to help users adapt.
This update affects only users in Portfolio Margin Mode—a sophisticated trading setup that allows cross-product collateral and hedging across spot and derivatives. The core improvements include risk unit consolidation, new stablecoin depeg risk modeling (MR9), enhanced basis risk calculation (MR4), and adjustments to MR1 and MR6 risk parameters.
Whether you're an experienced derivatives trader or managing complex hedges, understanding these changes is critical to maintaining optimal margin efficiency and risk control.
👉 Discover how OKX's advanced margin system can boost your trading performance.
Seamless Account Mode Switching with Open Positions
One of the most user-friendly upgrades arriving before the full rollout is the ability to switch account modes while holding open positions. Previously, traders had to close all positions before transitioning between isolated and portfolio margin modes. Now, you can switch without liquidating your portfolio.
This change allows you to:
- Compare margin requirements side-by-side in real time.
- Test new configurations without interrupting your strategy.
- Make informed decisions based on actual risk exposure.
While most transitions will succeed, certain edge cases—such as extreme market volatility or incompatible order types—may prevent immediate switching. In such cases, clear error messages will guide you through resolution steps.
This feature empowers traders to respond dynamically to changing market conditions while maintaining flexibility in risk management.
Unified Risk Units: Smarter Hedging Across Markets
The cornerstone of the update is risk unit consolidation. Under the new system, all products tied to the same underlying asset—such as ETH—are grouped into a single risk unit, regardless of settlement currency or product type.
Before vs. After: Simpler, More Efficient Structure
Previously, ETH-related positions were fragmented across multiple risk units based on quote currency (e.g., ETH-USDT, ETH-USDC, ETH-USD). This made cross-margin hedging less intuitive and reduced capital efficiency.
Now, under the updated Spot-Hedged Portfolio Mode, all ETH instruments fall into one unified risk unit:
- ETH perpetual and futures contracts (USDT, USDC, USD-denominated)
- ETH options
- ETH spot holdings
- Active ETH spot orders (both ETH/USDT and ETH/USDC)
This consolidation enables automatic offsetting between long spot and short derivatives positions, significantly reducing required margin when hedges are in place.
For example:
If you hold $50,000 worth of ETH spot and short $30,000 in ETHUSD futures, only the net exposure ($20,000) will be subject to full margin requirements—the hedged portion benefits from reduced collateral needs.
This unified approach mirrors institutional-grade risk frameworks and brings greater transparency to portfolio-level risk assessment.
Introducing MR9: Managing Stablecoin Depeg Risk
With cross-currency hedging now enabled within a single risk unit, OKX introduces Market Risk 9 (MR9)—a new mechanism designed to account for stablecoin depeg events.
When USDT, USDC, or USD-based positions hedge each other, any divergence in their dollar pegs creates hidden risk. For instance:
- If USDT drops to $0.95 while USD remains at $1.00, a seemingly balanced hedge could result in unexpected losses.
MR9 quantifies this risk using a three-step process:
Step 1: Calculate Cash Delta by Denomination
Each position’s exposure is converted into a Cash Delta value in USD terms:
- USDT/USDC contracts: Face value × multiplier × mark price × stablecoin USD rate
- Coin-margined contracts: Adjusted for funding drift and volatility
- Options and spot: Delta-adjusted notional exposure
Step 2: Measure Cross-Margin Hedges
OKX evaluates overlapping exposures across:
- USDT vs. USD
- USDT vs. USDC
- USDC vs. USD
For each pair, it calculates the minimum absolute delta—representing the size of the cross-currency hedge.
Step 3: Apply Tiered Risk Factors
Based on current stablecoin index levels and hedge size, MR9 applies graduated risk factors from dynamic tables. Larger hedges and deeper depegs trigger higher margin charges.
For example:
A $10 million USDT/USD hedge with USDT trading at $0.985 incurs a 2.5% MR9 factor in the third tier—adding $250,000 to required margin.
These tiered structures ensure that systemic risks from widespread stablecoin instability are prudently accounted for—protecting both traders and the platform.
👉 See how OKX manages multi-currency risk with real-time margin modeling.
Enhanced Basis Risk Modeling: MR4 Gets Smarter
Market Risk 4 (MR4) now incorporates both basis risk and term structure risk, offering a more accurate reflection of futures-spread dynamics.
What Is Basis Risk?
Basis = Futures Price – Spot Price
Even when hedging spot with futures, price divergence (basis) can lead to P&L swings. For example:
Bitcoin spot at $50,000; BTCUSD futures at $51,000 → Basis = $1,000
This gap fluctuates due to funding rates, interest differentials, and market sentiment—especially over longer durations.
How MR4 Works Now
OKX calculates MR4 using:
Annualized Move Risk: Expected annual volatility per asset
- BTC/ETH: 7.5%
- Mid-tier alts (SOL, XRP, etc.): 22.5%
- Others: 45%
Time to Expiry (Days_to_expiry)
- Spot: 0 days
- Perpetuals: 0.33 (modeled as short-term roll risk)
- Futures/options: Actual days until expiration
- Cash Delta Grouping (cash_delta_t): Positions grouped by expiry date
Longer-dated contracts face higher basis volatility, so MR4 increases accordingly—ensuring adequate margin coverage during periods of contango or backwardation.
Updated MR1 & MR6 Parameters: Aligning with Market Realities
To reflect evolving asset volatilities, OKX has refreshed the asset classifications for MR1 (price shock) and MR6 (liquidation buffer).
MR1 Adjustment: Maximum Price Move Scenarios
| Tier | Assets Affected |
|---|---|
| High Volatility (7–20%) | Now includes SOL, DOGE, PEPE, BNB, SHIB, ORDI, WLD |
| Lower Volatility (5–15%) | BTC, ETH only |
This shift recognizes that newer high-beta assets behave more like mid-cap cryptos than legacy coins in stress scenarios.
MR6 Adjustment: Liquidation Risk Buffer
| Asset Group | Max Drawdown Assumption |
|---|---|
| BTC/ETH | ±30% |
| SOL, XRP, BNB, DOGE, etc. | ±40% |
| All others | ±50% |
These buffers ensure sufficient headroom during flash crashes or black-swan events—especially important in leveraged portfolios.
Core Keywords for SEO
- Portfolio Margin Mode
- OKX margin upgrade
- Risk unit consolidation
- Stablecoin depeg risk
- Cross-margin hedging
- Basis risk in crypto
- MR9 margin calculation
- Cash Delta modeling
Frequently Asked Questions
Q: When will the new rules take effect?
A: The full rollout completes on January 21, 2025, with gradual implementation starting December 30, 2024. Simulation mode will be available by December 17, 2024.
Q: Will my current positions be affected immediately?
A: No immediate action is required. However, once the update is live, your margin usage may change based on consolidated risk units and new MR9/MR4 calculations.
Q: Does MR9 apply if I don’t trade stablecoin pairs?
A: Only if you have cross-denominated hedges (e.g., USDT long vs. USD short). Purely single-currency portfolios are unaffected.
Q: Can I still use Isolated Margin Mode?
A: Yes. These changes only impact users in Portfolio Margin Mode. Isolated mode remains unchanged.
Q: How can I prepare for the transition?
A: Use the simulation environment before January 2025 to test your strategies under the new rules. Monitor your Cash Delta distribution and cross-currency exposures.
Q: Where can I see my updated margin requirements?
A: The trading interface will display real-time margin impact during mode switching and position adjustments.
👉 Start testing the new portfolio margin model in simulation mode today.