Understanding the OKX Security Fund
As a digital asset exchange offering leveraged products, OKX is committed to maintaining a stable and fair trading environment. A key component of our risk architecture is our Security Fund. This article explains the Security Fund's purpose, structure, funding mechanism, and outlines critical disclaimers regarding its operation.
Checklist
- What's the Security Fund?
- What's the Security Fund Used For?
- What Contributes to the Security Fund?
- Differences between UI and API data
- Not an Insurance Product
- No Guarantee of Individual Benefit
- Absolute Discretion and No Beneficial Interest
Notes
The Security Fund is a segregated pool of assets, established and fully owned by OKX. Its sole function is to serve as a financial buffer and a safety net specifically designed to mitigate counterparty risk arising from leveraged trading, including derivatives and futures trading where available.
Some other cryptocurrency exchanges may have a similar system in place, typically called an "Insurance Fund". Within our OKX group, depending on local regulations, the term "Security Fund" may be known by other names.The fund is primarily used to manage losses incurred when a user's position is liquidated and subsequently leads to negative equity (a state where the market value of the position falls below the "bankruptcy price" or zero-margin level).
The core purpose of the Security Fund is to absorb the shortfall created by "bankrupt positions."When a position is forcibly closed (liquidated), the system attempts to execute the trade in the market. If, due to rapid market movements and high volatility, the executed price is lower than the account's bankruptcy price, the resulting deficit (the excessive loss) is covered by the Security Fund.
The Security Fund is critical because it:
Details follow the official OKX help article; this page is a learning checklist, not an official mirror.
