New Dynamic Interest Rate System for Binance Margin Trading

Effective from 2023-03-01 06:00(UTC+0), Binance Margin’s new dynamic interest rate system ensures interest rates always reflect current market conditions.

Margin loan interest rates will change every hour based on current market conditions. Binance Margin users will continue to be charged simple interest for their borrowings hourly. The interest accrues at the start of every hour (e.g., 13:00, 14:00, etc.), and will be added to their total margin debt every time it accrues.

You can check the latest token borrow rates on the Binance Margin Data page and API. Moreover, you can also find the next hour's estimated interest rate via the Margin Trading webpage. Corresponding endpoints are available on API too.

You can view up to 30 days’ historical margin interest rates from Binance Margin Interest History or up to 6 months’ records via API. You may also use the [Export] function to download data of the past year. If there are multiple interest rate records in a day, the largest interest rate data will be used.

The system automatically accrues one hour's interest when you borrow funds. Subsequently, the system will accrue a new hour's interest on each hour.

For example, assuming the hourly interest is 0.001%. User A borrows 1,000 USDT at 13:55. And now it’s 14:30.

The interest rate accumulated so far is 1,000 * 0.001% * 2 hours = 0.02 USDT. User A will be charged for a two-hour interest because the first interest was counted at 13:55, and the second was counted at 14:00.

While the interest rate calculations remain the same under the new dynamic interest rate system, it’s important to understand when and how interest is calculated. You can repay your margin borrowings at any time. However, if funds are borrowed for less than an hour, you’ll still be charged for the full hour’s interest.

The calculation formula:

I (interest) = P (borrowed money) * R (hourly interest) * T (in hours)

Assuming the hourly interest is 0.001%. User A borrows 1,000 USDT at 13:20 and repays at 14:15.

The interest rate calculation is calculated as 1,000 * 0.001% * 2 hours = 0.02 USDT.

User A was charged for two hours because interest is charged once for the borrowing between 13:20 to 13:59 and another from 14:00 to 14:15.

Given interest rates may fluctuate according to market conditions, we advise monitoring the applicable interest rates and margin level closely to avoid potential liquidation due to large interest rate fluctuations and/or interest accrued over time.