Classic Portfolio Margin and Portfolio Margin: Similarities and Differences

Binance offers two types of Portfolio Margin modes:

Classic Portfolio Margin, launched in April 2022, and
Portfolio Margin, launched in May 2023.

Classic Portfolio Margin and Portfolio Margin were released separately to target users with different risk management strategies. Classic Portfolio Margin is designed for high-volume institutional traders who require flexibility in their trading strategies, while Portfolio Margin is geared towards traders who want to benefit from the flexibility in collateral management and maintain a higher level of risk mitigation.

Here are some key differences between the two Portfolio Margin modes.

Eligibility and Activation

Classic Portfolio Margin: Your trading volume on USDⓈ-M/COIN-M Futures is equivalent to that of VIP tier 7 - 9, or the combined balance of your Cross Margin, USDⓈ-M Futures, and COIN-M Futures Wallets exceeds 10 million USDT.
To activate Classic Portfolio Margin, you need to submit an application to Binance and sign a legal agreement. For more details, please refer to How to Apply for the Binance Classic Portfolio Margin Program.
Portfolio Margin: To qualify for the Binance Portfolio Margin Program, you must be at VIP 1 - 9 or meet the required trading volume (equivalent to VIP 1).
The Portfolio Margin can be activated directly from your Binance Futures Wallet or the Futures trading interface. You don’t need to sign any legal documents to activate the service. For more details, please refer to How to Activate the Portfolio Margin Mode on Binance.

Margin Check

Classic Portfolio Margin: There is no initial margin check.
Portfolio Margin: There is an initial margin check.

UniMMR Calculation

Classic Portfolio Margin: The uniMMR calculation is defined as (Unified Account Equity / Unified Maintenance Margin Amount) and does not include “OpenLoss”.
Portfolio Margin: “OpenLoss” (which reflects a decrease in equity value due to a change in collateral affecting open orders on Cross Margin) is included in the Assets Equity formula and can impact the uniMMR.

Liquidation

Classic Portfolio Margin: When the uniMMR falls below 105%, the system will initiate a full liquidation, and you are responsible for paying off any outstanding pmLoan amount.
Portfolio Margin: When the uniMMR falls below 105%, the system will initiate a full liquidation, but the negative balance will be reimbursed after the liquidation. There is no pmLoan.

Insurance Fund

Classic Portfolio Margin: The Insurance Fund does not cover any losses, and you need to sign a contract stating that you will cover any losses.
Portfolio Margin: The Insurance Fund covers all losses, and you do not need to sign a contract to cover losses.

Fund Auto Collection Function

Portfolio Margin and Classic Portfolio Margin: This function is available for all coins (except for BNB transfers from the USDⓈ-M Futures-PM / USDⓈ-M Futures Wallets, respectively).

Asset Transfer

For both Classic Portfolio Margin and Portfolio Margin:
- You can only transfer assets in and out of the Portfolio Margin Account through the Margin-PM Wallet. Please note that transfers in and out from the USDⓈ-M or COIN-M Futures-PM Wallets to non-PM wallets (such as the Spot Wallet and Options Wallet) are not supported.
- You can only transfer from the Futures-PM Wallet to the Margin-PM Wallet using the Aggregate Balances function within the Portfolio Margin Account (except for BNB in the USDⓈ-M Futures-PM Wallet).
- You can transfer BNB between the Margin-PM Wallet and the USDⓈ-M Futures-PM Wallet within the Portfolio Margin Account.
- USDⓈ-M and COIN-M Futures-PM Wallets cannot transfer assets to one another.

Position Limits

For both Classic Portfolio Margin and Portfolio Margin, default position limits in COIN-M and USDⓈ-M Futures are maintained for each symbol.

You can refer to the dedicated COIN-M Futures and USDⓈ-M Futures tables in the [Leverage & Margin] section for a comprehensive view of the notional limits for all symbols listed.

Interest for Negative Balances

For both Classic Portfolio Margin and Portfolio Margin, interest will be charged on negative balances (all coins).

Please refer to the respective FAQs (Classic Portfolio Margin / Portfolio Margin) for more details.

	Classic Portfolio Margin	Portfolio Margin
Supported Wallets	Cross Margin Wallet USDⓈ-M Futures Wallet COIN-M Futures Wallet
uniMMR Calculation	uniMMR = ∑Equity /∑MM	adding asset OpenLoss in uniMMR; ∑adjustedEquity = ∑Equity - ∑assetOpenLoss* assetIndexPrice; uniMMR = ∑adjustedEquity /∑MM
Initial Margin Check	No	Yes
pmLoan	Yes	No
ADL	Yes	Yes
Position Limit	For both Classic Portfolio Margin and Portfolio Margin, default position limits in COIN-M Futures are maintained for each symbol, while USDⓈ-M futures trading is not subject to any position limits.
Legal agreement signing to cover potential losses	Yes	No
Interest for Negative Balances	Yes, interest will be charged on negative balances (all coins). For more details on the difference between a negative balance and a negative threshold, please refer to the Binance Portfolio Margin Trading Rules (applicable for both Classic Portfolio Margin and Portfolio Margin).
Conditional Order	Website and API	Website. Separate Conditional Order Support Service
Take-Profit Stop-Loss Orders	Yes	No
Wallet Transfer Logic	You can only transfer assets in and out of the Portfolio Margin Account through the Margin-PM Wallet. Please note that transfers in and out from the USDⓈ-M or COIN-M Futures-PM Wallets to non-PM wallets (such as the Spot Wallet and Options Wallet) are not supported. You can only transfer from the Futures-PM Wallet to the Margin-PM Wallet using the Aggregate Balances function within the Portfolio Margin Account (except for BNB in the USDⓈ-M Futures-PM Wallet). You can transfer BNB between the Margin-PM Wallet and the USDⓈ-M Futures-PM Wallet within the Portfolio Margin Account. USDⓈ-M and COIN-M Futures-PM Wallets cannot transfer assets to one another.
Fund Auto Collection Function	USDⓈ-M and COIN-M Futures-PM Wallets can transfer all assets to the Margin-PM Wallet, except when transferring BNB from the USDⓈ-M Futures-PM Wallet.
Auto Repay Negative Balance	Yes. The auto-repay function supports repayment with the same coins.