The new crypto margin account. How does the OpenEXA Margin Account work?

How does OpenEXA's Margin account work?

An OpenEXA Margin Account is a powerful tool that allows investors to access additional funds to invest in cryptocurrencies or stablecoins by leveraging their real-world assets as collateral. This type of account extends a line of credit to investors, which increases their financial leverage and allows them to invest more than they would otherwise be able to with their own capital.

By borrowing OXA, stablecoins or cryptocurrencies through an OpenEXA Margin Account, investors can participate in the cryptocurrency market without having to sell their existing assets. Instead, they can use their RWAs as collateral, which can help them manage their risk exposure more effectively.

However, it's essential to recognize that any margin account can also increase the risk of losses in case of market downturns or volatility. The lack of liquidity or a sudden drop in the value of the collateral assets could lead to margin calls, requiring investors to provide additional collateral or sell their assets to cover their losses.

5 Simple Steps

Step 1: Understanding OpenEXA's Margin Account

OpenEXA offers a unique margin account that enables users to access on-chain credit for trading on Wall Street. Unlike traditional margin accounts, OpenEXA's platform utilizes onramp and operational infrastructure to provide a seamless experience. On-chain credit paves the way for crypto on Wall Street. This account empowers users to access funds for trading, investments, and other financial activities, all within a secure and decentralized ecosystem.

Step 2: Account Creation, Verification and onboarding

To begin, visit OpenEXA's website and create an account. You will need to provide some account specific information and undergo a verification process to ensure compliance with regulatory requirements. This step is crucial for maintaining a secure and trustworthy platform. To get started, visit OpenEXA's user-friendly platform again after you notified by OpenEXA accounts team. The onboarding process is quick and straightforward, ensuring a seamless experience for users of all levels of expertise. Once your account is set up, you'll gain access to a comprehensive suite of tools and features.

Step 3: Assign custody of traditional assets to OpenEXA

Once your account is created and verified,  it's time to assign custody of your traditional assets to OpenEXA these assets will serve as collateral for leveraging your trading activities, ensuring security and transparency throughout the process. OpenEXA freezes the asset at the custodian and mints AUT (Asset Unique Tokens) against the assets. OpenEXA supports a wide range of cryptocurrencies, enabling you to swap AUT for OpenEXA Credit tokens OXA or with your preferred digital assets.  

Step 4: Borrowing Against Collateral

With your margin account set up, assets frozen and AUT minted, you can now borrow against your collateral to increase your trading power. OpenEXA's platform calculates the borrowing capacity based on the value of your collateral (AUT) and the margin limit you have set. This borrowing power allows you to execute trades with a higher volume on various exchanges.

Step 5: Managing account and return of Tokens

As you engage in trading activities, it is essential to effectively manage your margin account. OpenEXA provides tools and resources to monitor your account's performance, including real-time updates on your borrowing, collateral value, and available funds. Keeping a close eye on these metrics is crucial to maintaining a healthy margin account and avoiding potential liquidation risks. At the end of the duration return the tokens to OpenEXA or renew.

By following these five easy steps, you can leverage OpenEXA's margin account to access on-chain credit and engage in trading on Wall Street with enhanced capabilities. Remember to conduct thorough research and seek professional advice before engaging in margin trading to mitigate risks and make informed decisions.

Simplifying On-Chain Credit and Operational Infrastructure for the Next Generation of Wall Street.