In a recent move, OKX, a leading cryptocurrency exchange, has announced the delisting of the Fetch.ai (FET) margin trading pair and its corresponding perpetual futures contract. This decision aligns with the official migration requirements set forth by the Fetch.ai project.
This article provides a comprehensive overview of the delisting process, key dates, risk management adjustments, and essential steps users must take to safeguard their assets.
Key Details of the Delisting
The delisting will specifically affect the FET/USDT margin trading pair and the FETUSDT perpetual swap contract. Trading for the perpetual futures will be officially halted between 08:00 and 09:00 UTC on July 5, 2024. Following the cessation of trading, all open orders on the order book for these instruments will be automatically canceled.
OKX has outlined its settlement procedure for open perpetual futures positions. All positions will be closed at the arithmetic average price of the corresponding OKX Index, calculated over the hour immediately preceding the delisting time. In the event of any abnormalities with the index price, OKX reserves the right to adjust the final settlement price to a fair and reasonable level. Furthermore, the funding rate for the period ending at 08:00 UTC on the delisting day will be set to zero, meaning no funding fees will be accrued or paid during that interval.
Given the potential for increased market volatility leading up to the delisting, OKX strongly advises users to proactively manage their risk. Users are encouraged to either reduce their leverage or close out their positions entirely before the trading halt.
Users holding positions valued over $10,000 USD at the time of settlement will face a temporary restriction on transferring assets out of their trading accounts. This security measure is designed to ensure an orderly settlement process and will be lifted approximately 30 minutes after the delisting is complete.
Adjustments to Risk Control Parameters
In preparation for this event, OKX will implement adjustments to its risk control mechanisms. This includes modifications to the price limit rules for the affected contracts. The maximum and minimum price limits will be recalculated according to a specific formula and will be subject to change based on prevailing market conditions to maintain market stability.
👉 Check the latest risk parameter updates
Margin Trading Suspension Timeline
The process for the margin trading pair will be phased. Support for borrowing and lending functions for the FET/USDT pair was discontinued on June 27, 2024, at 07:00 UTC. The pair will be completely delisted from the margin trading market on July 4, 2024, at 07:00 UTC.
Users who have outstanding loans or have used FET as collateral for margin trades must take immediate action. It is crucial to repay any borrowed funds or replace FET collateral before the delisting to avoid automatic, forced liquidation by the system, which could result in unexpected losses.
OKX has issued a clear warning that the price of FET may experience significant volatility during this period. To prevent potential losses from forced repayments at unfavorable prices, users are recommended to close all related margin positions well in advance of the deadlines.
Discount Rate Modifications
Concurrent with the delisting, OKX will also adjust the discount rate applied to FET tokens held in margin accounts. For assets with a total value between $0 and $50,000, a discount rate of 0.5 will be applied. Any FET assets valued over $50,000 will have a discount rate of 0.
For users operating a multi-currency cross-margin account, the system will convert all holdings into their USD equivalent value. The aforementioned discount rates will then be applied to this total to determine the asset's value for collateral purposes, a standard procedure to balance market risk exposure.
For the most precise and official information, users should always refer to the original announcement on OKX's official website.
Frequently Asked Questions
Why is OKX delisting the FET margin pair and perpetual futures?
OKX is delisting these specific FET products to comply with the official token migration plan announced by the Fetch.ai project team. Exchanges often adjust their offerings to align with project updates and network changes.
What happens to my open FET perpetual futures position on July 5th?
Any open FETUSDT perpetual futures positions still active at the trading halt time (between 08:00-09:00 UTC) will be automatically closed. The settlement price will be based on the hourly arithmetic average of the OKX Index price just before delisting.
I have an open loan using FET as collateral. What should I do?
You must repay your outstanding loan or substitute the FET collateral with another acceptable asset before the delisting on July 4th at 07:00 UTC. Failure to do so may trigger a forced repayment by the system, potentially at an unfavorable market price due to expected volatility.
Are there any transfer restrictions after the delisting?
Yes. Users with settled positions exceeding a value of $10,000 will be temporarily unable to transfer assets out of their trading accounts. This restriction is a safety precaution and is typically lifted within 30 minutes after the settlement is complete.
Where can I find the official details and updates?
All official communications and detailed parameters are provided in the original announcement on the OKX website. It is the definitive source for all information regarding this delisting process.
Will this affect the spot trading of FET on OKX?
This announcement specifically concerns the FET/USDT margin trading pair and perpetual futures contract. As of this communication, there is no indication that the spot trading market for FET will be affected. Always check the official OKX announcements for any future updates.