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As experts in the field of cryptocurrency and blockchain, we are excited to bring you the latest updates and insights from the industry. Today, we are discussing the recent announcement made by OKX, a leading cryptocurrency exchange, regarding significant changes to its funding fee mechanism for perpetual futures.
OKX has unveiled a revamped funding fee mechanism that aims to enhance user experience and improve the efficiency of funding fee settlements. These changes will bring about a new era of transparency and effectiveness in perpetual futures trading on the platform.
Enhancements to Order Cancellation Logic
The updated mechanism will introduce adjustments to the order cancellation logic during settlement, divided into four distinct phases. While the calculation logic for funding rates remains consistent, the collection and distribution of funding fees will see significant improvements, ensuring a seamless trading experience for users.
Refined Collection and Distribution Process
One of the key improvements includes a change in the collection of funding fees. Previously, OKX would collect fees up to the liquidation threshold, potentially canceling orders in the process. With the new model, the platform will collect the full amount of outstanding funding fees, even if it exceeds the liquidation threshold, leading to a fairer and more structured fee collection process.
In isolated margin mode, funding fees will now be solely collected from the margin balance of isolated positions, without canceling orders during the collection process. Cross margin modes will similarly undergo changes, with funding fees being collected from cross margin equity without order cancellations.
Phased Implementation for Seamless Transition
The revamped mechanism will be rolled out in four phases, starting from June 12, 2024, and concluding on July 1, 2024. Each phase will cover a specific set of perpetual futures, ensuring a smooth transition for traders and minimizing disruption to the market.
After July 1, 2024, all perpetual futures, including new listings, will adhere to the new funding rate mechanism, solidifying OKX’s commitment to providing a streamlined and efficient trading environment.
For more in-depth information on these changes and to stay updated on the latest developments in the cryptocurrency space, visit the official OKX source.
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