CoinEx generates interest for CoinEx Fixed Savings by deploying user capital into high-utilization margin lending markets and on-chain staking protocols. In 2025, the platform maintained a 78% capital utilization rate across major assets, ensuring borrower demand consistently outstrips stagnant liquidity. Revenue originates from interest spreads between margin borrowers, who pay an annualized rate often exceeding 12%, and the fixed rates paid to depositors. By maintaining a 1:1 Proof-of-Reserves ratio verified every 24 hours, the exchange manages operational exposure while channeling roughly 65% of generated interest income directly to liquidity providers, balancing solvency with competitive APR offerings.
The primary mechanism for generating interest income involves lending deposited assets to traders engaged in margin trading. Users borrow these assets to open leveraged positions, which require the payment of hourly interest.
As of early 2026, the average hourly interest rate for borrowed assets on the platform sits at approximately 0.005%. This creates a continuous stream of interest payments that accumulate daily.
The structure of these payments follows a standard calculation model:
| Party | Interest Share |
| Borrowers | Pay 100% of Interest |
| Depositors | Receive 60% of Interest |
| Platform Operations | Retain 40% of Interest |
These interest payments from margin traders represent the largest portion of the total pool distributed to depositors. When market activity increases, borrowing demand rises, which maintains the interest payout consistency.
This demand-based model requires automated systems to ensure that collateral stays sufficient at all times. If a borrower’s collateral amount drops below 110% of the loan amount, the system triggers an automatic sale.
Since the beginning of 2024, these automated liquidation protocols have maintained a 99.9% success rate in recovering the principal amount. This ensures that the assets provided by depositors remain secure even when market prices drop rapidly.
The recovered funds and idle assets are then reallocated to secondary generation streams to maximize efficiency. A significant portion of these assets is deployed into institutional-grade staking validators.
For Proof-of-Stake networks like Ethereum, the platform captures the block rewards directly through its own validator infrastructure. This process adds an additional 3-5% APR on top of the interest income generated from margin traders.
The following list details the allocation strategy for non-utilized liquidity:
50% allocated to high-liquidity margin lending pools.
30% staked on Proof-of-Stake networks for block rewards.
20% held in cold storage to ensure immediate redemption availability.
This distribution strategy ensures that idle assets remain productive rather than sitting stagnant. By diversifying where the assets are placed, the platform reduces reliance on a single income stream.
This diversification also requires strict solvency measures, as funds must be accounted for at all times. The operational framework mandates daily audits of reserves to confirm that assets are not counted multiple times.
Users verify the platform’s solvency through the Merkle tree verification process available on the official website. As of February 27, 2026, the audit report confirms a 100% reserve ratio, proving that every deposited asset is present.
This level of transparency is possible because of low administrative overhead in the digital exchange model. Unlike traditional financial institutions with high physical infrastructure costs, the automated nature of the platform lowers the breakeven point significantly.
The platform manages the following operational efficiencies:
Automated credit assessment for all margin traders.
Smart contract execution for all staking reward distributions.
Zero-latency reallocation of funds between lending and staking pools.
These processes allow for the movement of assets based on real-time market needs. When trading volume increases, the lending demand rises, which shifts the ratio of assets in the margin pool to accommodate new borrowers.
During periods of high market activity, the platform observes a 40% increase in loan demand within a 24-hour window. The system adjusts by instantly moving capital from staking pools back into the margin lending market.
This agility is supported by the platform’s contingency reserve fund. This pool holds 5% of all interest revenue to absorb any unforeseen bad debt that might occur during market events.
This reserve acts as a safety buffer for the platform. In the event of a sudden market downturn, the insurance pool provides the necessary liquidity to maintain full payouts for all CoinEx Fixed Savings depositors.
The combination of lending, staking, and reserve management creates a self-sustaining financial loop. Each component is designed to ensure the reliability of the interest payouts for users who utilize these products.