Introduction to OKX Simple Earn Flexible and Its Rules

OKX Simple Earn Flexible is a value-added service that allows users to deposit their crypto assets to earn market-based interest on an hourly basis, and withdraw their assets at any time The entire process is secured by our reliable risk management system so that users can earn profits while their assets are protected. For the avoidance of doubt, Simple Earn is not a principal-protected product.

Use of assets

Crypto assets from Simple Earn users will be loaned to borrowers on our platform (which may include borrowers under our loan programmes or margin traders). Our Simple Earn service currently only supports a limited list of crypto.

Subscription and redemption

• Subscription

Lenders can subscribe at any time. Following subscription, their crypto will be locked in Simple Earn to act as a lending supply. Crypto will be lent to platform borrowers if a bid is successful.

• Redemption

Lenders can redeem their crypto at any time. The crypto to be redeemed will not participate in the next round of lending or generate returns for users for the current hour.

Rules for deposit limits

There is generally no deposit and redemption limit. OKX reserves the right to adjust the deposit and redemption limits based on the latest market developments and risks.

Interest rate setting and returns distribution

• Interest rate setting

For Simple Earn Flexible, you can set your minimum desired lending APR when subscribing and this can also be revised anytime on the order details page. Simple Earn checks borrowing demand every hour and sorts lending bids by the minimum lending APR from the lowest to the highest until the total loan demand is satisfied. The applicable interest rates paid by the borrowers will be set by OKX with reference to the highest accepted minimum lending APR and other market conditions.

Simple Earn matches loans based on the following rules:

• If your minimum lending APR is lower than the market APR, your funds will be loaned at the market APR.

• If your minimum lending APR is equal to the market APR, your funds may either be partially loaned or not loaned at all.

• If your minimum lending APR is higher than the market APR, your funds will not be loaned at all for that hour, and you will not receive any interest.

There is an exception to the foregoing rules: if the supply of all available lender's funds is almost fully loaned out, or if market circumstances require, the market APR may be raised by OKX to attract more lenders. In such situations, notwithstanding that your minimum lending APR may have fallen below the new market APR, there is a possibility that your funds might not be loaned out, which could result in no returns.

If the minimum APR of multiple lenders is equal to the market APR, loans will be matched on a first-come, first-served basis.

• Returns calculation and distribution

For users whose lending offers are successfully matched on the hour T, the hourly interest for the corresponding loan amount from T to T+1 will be distributed on the hour T+1.

For certain supported stablecoins, in order to promote a more consistent effective return rate for users, OKX has the discretion to implement a revised APR calculation mechanism from time to time. Instead of only matched orders obtaining returns, all eligible lending orders will generate returns. A lending order is eligible if the minimum APR is the same or lower than the interest rate paid by borrowers, which may vary from time to time. Users shall be rewarded with returns for making available eligible orders. As the interest proceeds collected from the borrowers are allocated to all eligible orders (regardless of whether the order is matched or not), the actual return earned by you may be less than your minimum expected specified APR, in the event where eligible lending supply exceeds borrowing demand.

Users may check if the specific stablecoin they use is subject to the revised APR calculation by viewing the tooltips available on the OKX platform when entering a subscription order.

• Source and use of service fee

We reserve the right to charge a fee. Currently, 15% of the accrued returns will be charged as a service fee by OKX. OKX typically applies a portion of such funds to our internal security funds as part of our risk management procedures in the event of market disruptions.