This is a general notification from the Binance Exchange. The products and services mentioned here may not be available in your area
Dear Binance Community,
Binance Futures will apply the latest price protection mechanism (“LPP”) to the TACUSDT USDⓈ-margined perpetual contract at 18:00 (Vietnam Time) due to the observed price divergence between spot markets across multiple exchanges. Users’ funds on Binance remain safe.
The LPP mechanism will be gradually applied by using a mark price smoothing process to minimize sudden price fluctuations and better ensure price stability during the transition period.
The LPP phase of the USDⓈ-margined TACUSDT perpetual contract will end when the spot price of TAC (TAC Protocol) on multiple exchanges converges and a stable index price can be inferred from the spot markets (as determined by Binance).
Binance will issue a separate announcement when the LPP phase of the USDⓈ-margined TACUSDT perpetual contract ends and is ready to move from LPP to standard mark price calculation (mark price = midpoint (Price 1, Price 2, Contract price)). The duration of the transition phase depends on price volatility and the availability of a stable index price.
What is the Nearest Price Protection mechanism?
Under the Nearest Price Protection mechanism, the mark price is calculated based on the latest averaged trading price of a perpetual contract within a certain range.
About mark price:
Mark price calculation method during the LPP phase:
Mark price = Average of trading prices over the last 10 seconds, calculated every second.
If there are fewer than 21 trading price levels within the last 10 seconds, the system will check the number of trading price levels within the last 100 seconds. If there are more than 21, the average will be based on the trading price levels within the last 100 seconds; otherwise, the average will be based on the closest 100 trading price levels of the above-mentioned contract.
The mark price will be capped at a price ceiling of ±1%, where the price change is limited to within ±1% during each one-second interval.
Mark price after the LPP phase ends:
When the LPP phase of the above-mentioned contract ends, the mark price will be calculated using the following formula:
Mark price = Midpoint (Price 1, Price 2, Contract price)
Please refer to Mark price and price index in the USDⓈ-margined coin-margined futures contract for the formulas for Price 1 and Price 2.
About funding rate:
Funding rate during the LPP phase:
The capped funding rate will be adjusted from 2.00% / -2.00% to +0.005% / -0.005% starting from 18:00 (Vietnamese Time) on 27 August 2026.
Detailed schedule is as follows:
Time | Maximum funding rate |
27/08/2026 15:00 (Vietnamese Time) | +2,000% / -2,000% |
27/08/2026 19:00 (Vietnamese Time) | +0,005% / -0,005% |
27/08/2026 23:00 (Vietnamese Time) | +0,005% / -0,005% |
28/08/2026 03:00 (Vietnamese Time) | +0,005% / -0,005% |
… | … |
The above-mentioned Contract is exempt from the 8.1 Adjustment to the funding time period rules. The funding time period will not be adjusted from every four hours to every one hour when the previous funding rate settlement price of the above-mentioned Contract reaches the capped funding rate.
Funding rate after the LPP phase ends:
After the LPP phase ends, the funding rate will follow the funding rate rules of the standard perpetual futures contract, in which the maximum and minimum funding rates may be up to +2.00% / -2.00%. The funding time period will be adjusted from every four hours to every one hour when the previous funding rate settlement price reaches +2.00% / -2.00%.
For more information:
Note:
This information is published as a Notice under Binance Exchange Rules Part 17.
During the LPP phase, Binance Futures will be the only component in the price index.
Please note that a stricter maximum price will be applied during the LPP phase. Binance may adjust the maximum price over time based on market risk conditions. API users can use GET /fapi/v1/exchangeInfo, while UI users can refer to this page to find the latest maximum price.
Based on market risk conditions, Binance may adjust the specifications of the above-mentioned Binance Futures contract over time, including funding fees, tick size, maximum leverage, initial margin, and/or maintenance margin requirements. Please refer to Trading Rules to learn the latest adjustments.
There may be differences between the original English content and translated versions. Please refer to the original English version for the most accurate information in case of any discrepancy.
Thank you for your support!
Binance Team
27/08/2026
Please note: There may be differences between the original English content and any translated versions (these versions may be generated by AI). Please refer to the original English version for the most accurate information in case of any discrepancy.