Some frequently asked questions about OVEX Interest accounts
How do I qualify for APRs greater than 10%?
Deposits over ZAR500,000 can qualify for APRs of up to 20%. APRs are negotiated based on deposit size. Click here to find out more.
Does OVEX guarantee capital preservation in its Interest Accounts?
OVEX does indeed guarantee capital preservation. This means any potential losses borne from OVEX’s secure yield generation will be on OVEX and not the client.
Once you submit a withdrawal – do you still earn interest over the 30-Day Notice Period?
You stop earning interest after you submit your withdrawal.
What is the withdrawal period?
The withdrawal notice period is 30 days.
What are the annualized interest rates I can earn?
The yield generated is directly proportional to the amount deposited. Please refer to the following page on the different supported assets and their relative yields.
How does Ovex generate yield with the deposited funds?
OVEX leverages secure channels to safeguard clients' funds whilst generating consistent interest repayments on a daily basis. This is achieved through the following channels:
- Primarily by offering post-trade settlement facilities to large OTC clients
- Secondly by Staking in Blue-chip De-Fi protocols
- And lastly through the Perpetual-Futures-Spot market arbitrage
PERPETUAL-FUTURES – SPOT MARKET ARBITRAGE:
On day 1, we have the following prices:
BTC perpetual price: $51000
BTC spot price: $50000
- So how do we capitalize on the price discrepancy?
The arbitrage starts by opening a short position on the perpetual market and buying the exact same amount of BTC on the spot market.
Let’s use an order size example of 1 BTC here:
On day 2, the prices converge:
BTC perpetual price: $52000
BTC spot price: $52000
In that situation, we close the arbitrage trade and calculate the results of the operation:
Perpetual result: - $1000 (because of the short)
Spot result: + $2000
Final profit: + $1000
It’s an arbitrage opportunity like any other