Binance Margin will begin implementing collateral haircuts on Cross Margin as of 2023-01-12 as part of its risk management strategies. Margin trading is a way to trade assets using capital provided by a third party. Compared to traditional trading accounts, margin trading accounts give traders access to additional funds and aid them in utilizing positions.
The Cross Margin Collateral Ratio tab of the Margin Data page contains a list of all the borrowable assets on Cross Margin as well as the corresponding collateral ratios for valuation (i.e., collateral haircuts). Each user’s maximum borrowing and transfer-out amounts on Cross Margin will be determined by Binance Margin based on their collateral value, which is the USDT-equivalent worth of all assets in a user’s Cross Margin account after taking into consideration the pertinent collateral ratios.
The margin level of Cross Margin accounts will be determined based on users’ total asset worth on Cross Margin without any haircuts; the collateral value will have no bearing on this calculation.
Delisting of borrowable assets
Binance Margin Will Remove KEY From Isolated Margin and Delist AGLD, DATA, ERN, FIO & TROY as Borrowable Assets. On the cross-margin pairs AGLD/BTC, AGLD/BUSD, AGLD/USDT, DATA/BUSD, DATA/USDT, ERN/BUSD, ERN/USDT, FIO/BUSD, FIO/USDT, TROY/BUSD, and TROY/USDT, as well as the isolated margin pair KEY/USDT, Binance will close customers’ holdings, carry out an automated settlement, and cancel any pending orders. Then these pairings will be removed from Cross Margin and Isolated Margin. To prevent any possible losses, users are strongly urged to cancel their holdings before the end of margin trading.
Users of Portfolio Margin are urged to move the aforementioned tokens from their Margin Wallet to their Spot Wallet and, if necessary, top up their margin amount by 2023-01-19. Users should keep a careful eye on the Unified Maintenance Margin Ratio (Uni-MMR) to prevent any possible liquidation that can happen if the aforementioned tokens are taken out of the Margin Wallet.
