What is offset voltage?

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In simple terms:

Offset voltage raises the CPU vcore udring load ONLY!

Fixed Voltage raises the vcore when idle and under load..

So in offset mode, your idle voltage can be 1.02v (lets say) but will rise to 1.30v (set by you in BIOS) under load (to keep your overclock stable)

In fixed voltage mode the voltage will be at 1.30v idle and 1.30v under load (depending on LLC settings).

Offset voltage is good but i (and a few others) have had issues with need more load vcore on offset mode compared to fixed. (example: Fixed 1.30v needed under load, Offset 1.35v needed under load)
 
Depending on your CPU and platform, offset might be useless.

You can make the voltage drop when idle by using the motherboard's powersaving technologies, like EIST and C-states.
 
haswell will downclock itself when the cpu is idle using a fixed cpu voltage

other cpu's don't hence the need to use offset cpu voltage,this allows the cpu to downclock itself at idle in speed/volts where as it wont if you use a fixed cpu voltage(haswell being the exception)

each cpu will have a default cpu voltage set by intel at the factory,loadline calibration will add a chunk of voltage to it through the motherboard bios and offset will add what you set also so +0.0xxxx amount to add or -0.0xxxx amount to undervolt the cpu
 
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