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Binance Cross Margin Trading Guide

2020-03-26 08:59

Margin Service Terms

By using the Margin Services, you acknowledge that you have read, understood, and accepted all of the terms and conditions in the Margin Service Terms, and you acknowledge and agree that you will be bound by and will comply with the Margin Service Terms. This Cross Margin Trading Guide does not govern the Margin Services and is provided for your information and convenience only. In the event of any conflict between this Cross Margin Trading Guide and the Margin Service Terms, the Margin Service Terms shall prevail.

Collateral Assets

Margin users can use the net assets in their Cross Margin account as collateral assets for Cross Margin trading. The digital assets that can be traded in Margin trading can be used as collateral assets for a Cross Margin account. For more details, please refer to the Margin Data page.

Interest

Simple interest accrues on an hourly basis. Interest is calculated first at the time of the successful advance of the relevant Margin Loan, which will be counted as the first hour. It will be calculated again at the next full hour (which will be counted as the second hour), and then every following full hour until the Margin Loan is repaid. This means that even if the Margin Loan is outstanding for less than an hour, interest will be charged for one full hour.
Interest is calculated according to the following formula:
Interest = Principal Amount Outstanding * (Daily Interest / 24) * Number of Hours the Loan Has Been Outstanding
Users may repay their debts at any time. Repayment shall be deemed payment of interest first, and after the interest is fully paid, repayment of the principal of the relevant Margin Loan.
Outstanding loan interest shall be included in the calculation of the Margin Level. Assuming no payments of interest are made for an extended period, the Margin Level of the user's Cross Margin account may deteriorate, leading to the risk of a margin call or even forced liquidation.
Margin account interest rates may adjust from time to time. The latest interest rate can be found here.

Margin Level and Risk Controls

Users may only use the net assets in their Cross Margin account at Binance as the collateral for Margin Loans, and the digital assets in any other accounts are not included in the calculation of Margin for Cross Margin trading. The table below illustrates the risk controls at different margin levels.
Margin Mode
Margin Level
Margin Trading
Apply for Margin Loans
Transfer Digital Assets out of Margin Account
Margin Call
Liquidation
Cross Margin
> 2
Y
Y
Y
N
N
Cross Margin
> 1.5 ≤ 2
Y
Y
N
N
N
Cross Margin
> 1.3 ≤ 1.5
Y
N
N
N
N
Cross Margin
> 1.1 ≤ 1.3
N
N
N
Y
N
Cross Margin
≤ 1.1
N
N
N
N
Y
The Margin Level of a Cross Margin Account is calculated as follows:
Margin Level = Total Asset Value of a Cross Margin Account / (Total Liabilities + Outstanding Interest)
where:
Total Asset Value of a Cross Margin Account = Current Total Market Value of All Digital Assets in the Cross Margin Account
Total Liabilities = Current Total Market Value of All Outstanding Margin Loans in the Cross Margin Account
Outstanding Interest = Principal Amount Outstanding * Number of Hours the Loan Has Been Outstanding * Hourly Interest Rate - Interest Paid

Sub-accounts

A master account can only have 10 sub-accounts in Margin trading. The maximum loan limit of a sub-account is 1/10 of the loan limit of the master account.