This is a general announcement. Products and services referred to here may not be available in your region.
Fellow Binancians,
Binance VIP Loan will launch the VIP Loan Collateral Ratio feature on 2023-04-18 at 04:00 (UTC). This will introduce a haircut to the market value of collateral assets pledged for VIP Loans.
Key Updates:
- Binance VIP Loan will be able to offer more collateral options to users, as the VIP Loan Collateral Ratio will mitigate the liquidation risks by applying haircuts on the market value of collateral assets.
- In addition, since the VIP Loan Collateral Ratio mechanism will reduce the value of collateral assets for all VIP Loan positions, this effectively increases the Loan-to-Value (LTV) of existing loans, and decreases the amount of assets users can start borrowing based on initial LTV.
- The size of the haircut for each collateral token is largely based on the risk of the underlying asset. Riskier assets receive larger haircuts, while different collateral ratios may also apply to the same token depending on the collateral amount. Users can refer to the VIP Loan page for the latest VIP Loan Collateral Ratios.
Please note that the LTVs for existing VIP Loan positions will not be adversely impacted in terms of margin call or liquidation risk due to this new feature. It is strongly advised to exercise prudent risk management for all manner of debt instruments used.
Users can read the FAQ for more information on the VIP Loan Collateral Ratio mechanism. For more queries, users can also get in touch with the Binance VIP Key Account Coverage team via email (vip_loan@binance.com) or Telegram (@vip_loan_binance).
Guides & Related Materials:
Notes:
- Binance reserves the right to amend the collateral ratios applied to collateral assets on VIP Loan at any time.
- Where any discrepancy arises between the translated versions and the original English version, the English version shall prevail.
Thanks for your support!
Binance Team
2023-04-14
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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.
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