A higher collateral ratio is good news, yet Binance is warning you to watch out for liquidation?
At 2 p.m. today, Binance raised the collateral ratios for $FIL and $HBAR in Cross Margin and Portfolio Margin from 50% to 60%.
In simple terms: FIL worth 100 yuan used to count as only 50 yuan of collateral; now it counts as 60 yuan, so you can borrow more.
The tiers for Portfolio Margin Pro were also updated: 100% for amounts under $800,000, then 95%, 75%, and 50% as the amount increases.
But Binance added a reminder to its announcement: collateral ratios and leverage can affect the unified maintenance margin ratio, so keep a close eye on things or you could be liquidated.
Our take: This is genuinely useful for people using leverage with FIL or HBAR—their collateral is worth more, giving their positions some breathing room. But neither coin has been doing well lately: FIL is down 36% over the past month and is currently at $0.74, while HBAR is down 25% and is currently at $0.063. A higher collateral ratio doesn’t mean the price will rise. Don’t mistake “you can borrow more” for “you should borrow more.”
The collateral ratio is the credit limit the exchange gives you, not a vote of confidence from the market. Manage your position according to your own risk tolerance, and don’t let the available credit make the decision for you.
At 2 p.m. today, Binance raised the collateral ratios for $FIL and $HBAR in Cross Margin and Portfolio Margin from 50% to 60%.
In simple terms: FIL worth 100 yuan used to count as only 50 yuan of collateral; now it counts as 60 yuan, so you can borrow more.
The tiers for Portfolio Margin Pro were also updated: 100% for amounts under $800,000, then 95%, 75%, and 50% as the amount increases.
But Binance added a reminder to its announcement: collateral ratios and leverage can affect the unified maintenance margin ratio, so keep a close eye on things or you could be liquidated.
Our take: This is genuinely useful for people using leverage with FIL or HBAR—their collateral is worth more, giving their positions some breathing room. But neither coin has been doing well lately: FIL is down 36% over the past month and is currently at $0.74, while HBAR is down 25% and is currently at $0.063. A higher collateral ratio doesn’t mean the price will rise. Don’t mistake “you can borrow more” for “you should borrow more.”
The collateral ratio is the credit limit the exchange gives you, not a vote of confidence from the market. Manage your position according to your own risk tolerance, and don’t let the available credit make the decision for you.
