How do I access cryptocurrency derivative products in Australia?

How can I access crypto derivatives?

OKX Australia Financial Pty Ltd (AFSL 379035) offers derivative products to both retail clients and wholesale clients in Australia. The pathway you follow depends on your client classification under the Corporations Act 2001 (Cth).

Pathway 1: Retail derivatives

Retail clients in Australia may access USDT-margined crypto perpetual contracts with a maximum leverage of 2:1. Retail derivatives are subject to additional consumer protections, including negative balance protection, margin close-out protection and mandatory disclosure documents.

To access retail derivatives, you must complete the following:

1. Suitability assessment. A series of questions about your financial situation, investment objectives, risk tolerance and trading experience. If the product is unlikely to be appropriate for your circumstances, you'll be ineligible and may reattempt after 180 days.

2. Knowledge assessment. 12 questions on derivatives mechanics, including leverage, margin, funding rates and liquidation thresholds. You must answer at least 10 out of 12 correctly to pass. If you didn't pass, a 24-hour waiting period applies before you may reattempt. After 3 unsuccessful attempts, a 30-day waiting period applies. After 5 unsuccessful attempts, access to derivatives is permanently locked and no further attempts are permitted.

Once both assessments are completed successfully, you may access retail derivatives trading within your OKX Australia account.

Before applying, you should read the Product Disclosure Statement - OTC Derivatives (PDS), Financial Services Guide (FSG) and Terms of Service - Australia. A Target Market Determination - OTC Derivatives (TMD) for the Products is also available. These documents can be accessed at app.okx.com/en-au.

Pathway 2: Wholesale derivatives

Wholesale clients may access a broader range of derivative products, including futures, options, perpetuals and margin trading, with different leverage parameters.

To qualify as a wholesale client, you must meet the criteria set out in the Corporations Act 2001 (Cth). This generally includes one or more of the following:

• Net assets of A$2.5 million or more

• Gross income of A$250,000 or more for each of the last two financial years

• Qualification as a sophisticated investor under the Corporations Act

You must complete the wholesale client onboarding process, which includes submitting a certification form and supporting documentation. Sophisticated investors must also pass a knowledge assessment.

Why do I have to do a knowledge assessment if I am a 'sophisticated' investor?

Sophisticated investors represent a wholesale client category with prior financial services experience. The knowledge assessment helps determine whether you meet the sophistication criteria. If you didn't pass, a 24-hour waiting period applies before you may reattempt. After multiple unsuccessful attempts, a 30-day waiting period applies. Passing the assessment is followed by certification and submission of supporting documentation.

What documentation do I need to submit?

For wholesale clients: after successful completion of any required knowledge assessment, you'll need to complete a certification form and provide supporting documentation for review.

For retail clients: no documentation is required. The suitability assessment and knowledge assessment are completed online as part of the application process.

What derivatives products can I access?

Retail clients: USDT-margined crypto perpetual contracts with a maximum leverage of 2:1. 17 trading pairs are available at launch. For the full list of available products, see the Trading Platform.

Wholesale clients: futures, options, perpetuals and margin trading. Product availability and leverage parameters differ from retail. Consult the Terms of Service and the Trading Platform for current offerings.

How is being a wholesale client different from being a retail client?

Wholesale clients are considered to possess a level of financial understanding, experience and resources that means certain consumer protections are not required. Retail clients receive additional protections including mandatory disclosure documents (PDS, FSG), negative balance protection, leverage limits, margin close-out protection and access to external dispute resolution through AFCA.

By choosing to access derivative products as a wholesale client, you acknowledge that you'll not receive the protections available to retail clients in relation to those products.

What happens if my application is rejected?

Wholesale pathway: if your documentation does not demonstrate that you meet the wholesale client criteria, your application will be rejected. You should only reapply if your circumstances have materially changed and you now meet the qualification criteria.

Retail pathway: if you didn't pass the suitability assessment, you may reattempt after 180 days. If you didn't pass the knowledge assessment, the waiting periods described above apply. After 5 unsuccessful knowledge test attempts, access is permanently locked.