Flexible Loan Collateral - New LTV and health factor announcement

We are excited to announce that starting December 22, 2025, from 18:00 pm (UTC+8) , we'll be updating the way we display your loan's loan-to-value ratio (LTV), to reflect discount rates for your collateral. This is a visual-only change that affects users who subscribe to our flexible loan products and is intended to provide more clarity and consistency to users.

We will also be introducing a new risk metric called the health factor.

Here’s what you need to know:

Updates to LTV presentation formula

The primary change to the way LTV is presented to you is to now factor in adjusted collateral value, which takes collateral discount rates into account.

Discount rates represent a multiplier (with a maximum of 1) we apply to your collateral to account for the volatility and liquidity of the tokens you set as collateral. Highly liquid and stable tokens will have a rate at or closer to 1. You can view the current discount rates for various tiers of users here.

Liquidation LTV refers to the threshold beyond which you will be liquidated, as you are assessed to have insufficient collateral to support the loan.

As your displayed LTV will now account for collateral discount rates, the Liquidation LTV threshold displayed to you no longer needs to separately account for collateral discount rates and the formula for the Liquidation LTV will now also change.

The changes are only in the way data is presented to you, and a user's current risk profile remains the same. For instance, a user will not be required to top up additional collateral as a result of this revised presentation method. Conversely, a user whose current collateral status is at risk of margin calls or liquidation continues to remain at risk following the change.

The revised formula for Liquidation LTV is set out below for your reference.

Introduction of health factor

Health factor is a new risk metric to help you visualise your risk better. It is a normalized measure of your loans’ liquidation risk. If it falls to 1 or lower, your collateral may be liquidated. The higher above 1, the healthier your collateral status and the less likely you are to be at risk of liquidations or margin calls.

By opening the new tooltip, you will be able to visualize your health factor and learn how it's calculated. The formula is:

Health factor = (Adjusted collateral value x Liquidation LTV) / Loan

Important: Health factor is a secondary metric to help you better visualise your risk level. The primary metric and triggers for risk management is still your LTV and the various LTV thresholds made known to you.

We appreciate your continued support and look forward to providing you with an even better product.

OKX team,

December 19, 2025

Disclaimer:

This content is not (i) investment advice or recommendations, (ii) an offer, solicitation, or inducement to buy, sell or hold digital assets, or (iii) financial, accounting, legal or tax advice. Digital assets, including stablecoins and NFTs, are subject to market volatility, involve high risk, and can lose value. You should consider whether trading or holding digital assets is suitable for you and consult your advisors for questions about your circumstances. Not all products are offered in all regions. For more details, see the OKX Terms of Service and Risk & Compliance Disclosure.