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Why do you say that the OKEx unified account redefines transactions?

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In the field of cryptocurrency trading, the unified account developed by OKEx will also redefine transactions in the field of encrypted assets.

Original source: OKEx

In the famous Chinese science fiction novel "Three-Body Problem", it is mentioned that a strong mutual Cosmic detector made of force material --- water droplet. Even though the droplet is only 3-4 meters long and weighs almost as much as a truck, just one droplet destroyed almost all of humanity's space battleships during the Doomsday War. This is the redefinition of future warfare by higher-level technology. Similarly, in the field of cryptocurrency trading, the unified account developed by OKEx will also redefine transactions in the field of encrypted assets.

1. What does unified account mean?

Currently, OKEx’s unified account has started public beta online, and future trading accounts will be divided into simple trading mode, single currency Margin mode and cross-currency margin mode (including automatic loan and non-automatic loan). Among them, the simple transaction mode only pays for non-margin transactions (currency transactions and call option transactions); the single-currency margin mode is to place transactions of the same settlement currency in a unified account; Currency assets are uniformly converted into U.S. dollar value, and all kinds of spot and derivative transactions in all currencies are placed under the same account.

It needs to be emphasized that unifying accounts is not simple Unify all trading accounts under one account, but have a qualitative leap in trading breadth (cross-species trading) and trading depth (tradable scale). Specifically, the unified account will rewrite the rules of the industry in the following aspects:

(1) Eliminate the cumbersome transfer of funds and improve transaction efficiency Convenience

In the current major exchanges, the design paradigm of their accounts is basically divided into: currency account , margin account, fiat currency account, contract account and other independent accounts. When relevant transactions need to be carried out, funds must be transferred, and the process is cumbersome. On the other hand, OKEx's unified account supports various types of transactions in one account, and no longer needs to transfer funds between multiple accounts, which reduces the complexity of users' operations.

(2) Share margin to improve capital utilization efficiency

< p line="DKXq">Under the original account mode, the balance of funds and position income among accounts cannot be shared, which takes up too much funds of users. Under the OKEx unified account, the single-currency margin mode supports the sharing of margins among derivatives of the same settlement currency, while the cross-currency margin mode converts assets in different currencies into US dollars to realize all derivatives of different settlement currencies. Margins are shared between products, thereby reducing capital occupation and improving capital utilization efficiency.

For example, in the following case, in the original account mode, a certain user has 3 BTC in the perpetual account For the balance, the long position of the BTCUSD perpetual contract has an initial margin of 1 BTC and an unrealized profit and loss of 2 BTC; at the same time, there is a balance of 1 BTC in the delivery contract, and no delivery contract position is held.

Under the same circumstances (no pending orders, isolated positions and options trading), users using the unified account can be used to trade The margin amount of the BTCUSD quarterly currency standard contract is 5 BTC, while the margin amount in the original account mode is only 1 BTC. Compared with the original model, the user's capital efficiency in this case has increased by 5 times. The reason is that the delivery contract can share the capital balance and position income in the original perpetual account.

(3) Net profit and loss, reduce the risk of liquidation and liquidation

Under the original account model, the profit and loss of positions between accounts cannot be netted off, and the position loss under a single account faces the risk of forced liquidation or liquidation (such as margin accounts and contract accounts) Position profit and loss cannot be offset). Under the OKEx unified account, the profit and loss of each account and even the positions of different settlement currencies can be netted off, and the margin is shared, which reduces the risk of liquidation.

For example, in the following case, a user has assets of 0.2 BTC and 3,000 USDT, and the average opening position of 20,000 USD To buy 100 BTCUSDT perpetual contracts (USDT margin) with 10 times leverage, and to short 200 BTCUSD perpetual contracts (currency-based) with 10 times leverage (position value is 20,000 USD). When the marked price of the perpetual contract drops to 17,000 USD, if the original account mode is used, the user's USDT margin contract will be liquidated, but if the unified account mode is selected, the user's two positions will not be liquidated.

(4) Automatic loan function to realize currency-free transactions, improve transaction convenience, and reduce the risk of liquidation and liquidation

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In OKEx’s cross-currency margin --- automatic lending mode, when the effective margin of USD value is sufficient, the user can When the balance of a currency is insufficient, selling the currency, or trading derivatives that use the currency as the settlement currency, can realize currency-free transactions, further improve transaction convenience, and further reduce the risk of liquidation.

For example, a user has 1000 UNI assets and wants to buy 20 DOT, but DOT only has DOT/USDT trading pair, At this time, the price of UNI is 3 USD, and the price of DOT is 6 USD. In the original account mode, the user has to sell 40 UNI first, buy 120 USDT and then buy 20 DOT; but in the unified account mode, the user does not need to make two transactions, directly buys 20 DOT, and generates 120 USDT of liabilities. Since it is within the interest-free amount of USDT, the liability does not need to pay interest. In this case, the user's transaction convenience is improved and transaction fees are reduced.

It can be seen from the above that compared with the old account design, OKEx’s unified account design can eliminate the need for fund transfer It greatly improves the utilization efficiency of users' funds, expands the breadth and depth of fund use, and protects the safety of users' positions. It can be said that the OKEx unified account is an epoch-making product in the field of cryptocurrency trading.