Xu Xingxing: Based on the principle of 100% reserve, when the borrowing amount exceeds the deposit amount, the platform's automatic currency exchange mechanism will be triggered

On August 30, OKX Xu Xingxing replied to the issue of "users questioning the OKX lending mechanism":
1. OKX current mortgage loan is a C2C market between users. OKX only provides a platform to help users with borrowing needs and earning needs match;
2. 100% reserve is a basic original responsibility of OKX. When the borrowing amount exceeds the deposit amount, the automatic currency exchange mechanism of the platform will be triggered due to the requirement of 100% reserve;
3. OKX of course places a limit on the maximum amount of currency borrowed, and it is not allowed to exceed 100%;
4. Due to the market activity of this currency, there was a large number of redemptions by depositors at that time, resulting in the borrowing amount exceeding 100%, which in turn triggered the automatic exchange of coins;
5. The OKX team will review the underlying design mechanism of the mortgage lending platform to see if there is an optimization plan. We also welcome your comments.