Binance adjusts collateral ratios for a range of assets under Portfolio Margin
Binance adjusts collateral ratios for a range of assets under Portfolio Margin
Beginning July 30, 2024, cryptocurrency exchange Binance will adjust the collateral ratios of various assets under its Portfolio Margin mode. This move aims to provide better margin management for users.
In a bid to optimize its Portfolio Margin system, Binance announced significant updates to the collateral ratios for several cryptocurrencies. Starting July 30, 2024, at 06:00 (UTC), a number of assets will see their collateral ratios adjusted, with most experiencing an increase to 75%.
The changes affect the following tokens (Asset / Collateral ratio, before / after):
- PEPE / 60% / 75%
- NOT / 40% / 75%
- NEAR / 45% / 75%
- BONK / 50% / 75%
- BANANA / 10% / 50%
- ZRO / 30% / 50%
- IO / 30% / 50%
- BB / 10% / 35%.
This adjustment is part of Binance's ongoing efforts to enhance risk management and provide users with more robust margin trading capabilities.
The new collateral ratios are designed to impact the Unified Maintenance Margin Ratio (uniMMR), which users need to monitor closely to avoid potential liquidation or losses. These changes are expected to bring about a more efficient and balanced trading environment for Binance users.
These updates reflect Binance's commitment to maintaining a secure and efficient trading platform. By revising the collateral ratios, Binance aims to mitigate risks associated with margin trading, thereby providing users with a more stable and reliable trading experience.
The adjustments will ensure that collateral requirements are better aligned with market conditions and the inherent volatility of each cryptocurrency.
Moving forward, Binance users are advised to keep a close eye on their uniMMR and manage their portfolios accordingly to adapt to the new collateral requirements.
This measure by Binance highlights the platform’s dedication to enhancing user experience and safeguarding investments in a highly dynamic market.
See also: Decentralized exchanges – Balancing innovation and challenges in the crypto market
