This is a general announcement. Products and services referred to here may not be available in your region.
Fellow Binancians,
At 2025-01-21 10:00 (UTC), Binance Margin will adjust the Initial and Maintenance Margin requirements on Cross Margin Pro to enhance the capital efficiency of users’ margin assets.
In addition, Binance will be updating the calculation of Margin Level and other Cross Margin Pro parameters: collateral haircuts and open order losses will now be factored into these calculations.
Margin Requirements: Initial and Maintenance Margin requirements will be adjusted. Please refer to Cross Margin Pro Position Tiers after the adjustment.
Collateral Haircuts: Collateral haircuts will be applied when calculating collateral values as part of Margin Level calculations. Please refer to Cross Margin Collateral Ratio for the most updated parameters.
Open Order Loss: Due to collateral haircuts, the collateral value of assets to be bought in an open order may be less than the collateral value of assets to be sold in the same order. This loss in collateral value is recognized when the order is placed, which is factored into Margin Level calculations.
Liquidation risks: Users holding assets that are subject to collateral haircuts after the update are potentially at risk of liquidation, since Margin Levels will drop with the new calculation logic.
Please refer to the Cross Margin Pro FAQ page for more information.
Starting from 2024-12-17 00:00 (UTC), new and existing Cross Margin Pro users must complete an updated questionnaire and agree to the updated Margin Terms in order to use Cross Margin Pro. These requirements are in place to ensure that users are aware of and understand the upcoming changes to Cross Margin Pro, and make necessary changes to their positions.
If you do not meet the requirements above, existing Cross Margin Pro accounts will be subject to the following conditions:
From 2024-12-19 00:00 (UTC) onwards, Binance Margin will disable borrowing on these Cross Margin Pro accounts.
From 2025-01-15 00:00 (UTC) onwards, Binance Margin will switch these Cross Margin Pro accounts to Cross Margin Classic Mode. Binance Margin may also conduct partial liability repayments before this switch on accounts which are at risk of having Margin Levels below the Margin Call threshold in Classic Mode.
Impacted users may resume usage of Cross Margin Pro after they have completed the requirements above.
Note: There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Thank you for your support!
Binance Team
2024-12-13
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Binance reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reasons without prior notice.
Disclaimer and Risk Warning: Digital asset prices are subject to high market risk and price volatility. The information provided does not constitute, in any way, a solicitation or recommendation or inducement to buy or sell the products. The value of your investment may go down or up, and you may not get back the amount invested. Cross-margining contributes to providing greater leverage than a regular margin account, and greater leverage creates greater losses in the event of adverse market conditions. There is increased risk that a user's cross-margin positions will be liquidated involuntarily, causing possible loss. Comments and analysis do not constitute a commitment or guarantee on the part of Binance. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. This product may not be available in certain countries and to certain users. This content is not intended for users/countries to which prohibitions/restrictions apply. For more information, see our Terms of Use and Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.
