OKX is set to upgrade its VIP Loan feature for traders at the VIP 5 tier and above, according to the official announcement. The update will be effective at 12:00 am UTC on June 6, 2024, and will initially support major cryptocurrencies including USDT, USDC, BTC, and ETH.

Enhanced VIP Loan Overview

The enhanced VIP Loan will operate on a market model, where borrowing orders (taker orders) are matched with lending orders (maker orders). Lenders will place orders on the Simple Earn order book, specifying the amount and interest rate. Borrowers will place orders based on an interest rate and select their loan amounts. The borrowing orders will be matched with lending orders according to the borrower’s specified interest rate. Once matched, the weighted average interest rate of the lending orders becomes the interest rate for the borrowing order.

The new system aims to provide increased predictability, stability, and flexibility for borrowers. After creating a borrowing order, users can choose to repay or roll over their loan at maturity, offering more control over their loan management.

Steps to Place a VIP Loan Order

1. Navigate to the Trade page on the Exchange and select VIP Loan.
2. Choose the cryptocurrency you wish to borrow.
3. Enter your expected maximum interest rate on the order placement page. Current market interest rates can be checked on the Market overview page.
4. After entering an expected maximum interest rate, the estimated amount available for borrowing will be displayed. This amount is for reference only; adjust the amount as needed.
5. Ensure that your trading account balance can cover the interest, as this will be deducted immediately upon order initiation.
6. Optionally, enable the Auto-rollover feature and set your maximum expected rollover interest rate.

Users are reminded to repay loans from the previous VIP Loan by June 30, 2024. These loans will also be displayed under the Loan overview tab in the enhanced VIP Loan section.

Additional Information

For detailed product documentation on the enhanced VIP Loan, please visit the official [OKX](https://www.okx.com/help/vip-loan-upgrade) site.

This content is provided for informational purposes only and is not intended as investment advice or an offer to buy, sell, or hold digital assets. Digital asset investments involve significant risks, including the potential for complete loss. It is crucial to consider personal financial conditions and consult with legal, tax, and investment professionals before engaging in such activities.

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