Binance announced that it will update collateral ratios for certain cross-margin assets starting December 8 at 6 a.m. UTC.
According to Binance, the cryptocurrency exchange is updating risk controls in Cross Margin by introducing tiered collateral settings for several altcoins grouped under asset tiers 8, 9, and 10. The change covers coins such as ZEC, ASTER, BONK, SEI, ETHFI, ETC, GALA, ATOM, FLOKI, ALGO, JUP, RAY, BTTC, PYTH, APE, JTO and NEO. Implementation is expected to finish shortly after it starts. Collateral value will now vary based on the USD notional size of a user’s positions. Smaller exposures will keep full collateral credit while larger ones will be subject to reduced collateral ratios. Binance notes that these adjustments affect Margin Level in Cross Margin Pro and advises users to track their accounts carefully to avoid liquidation.
The new collateral schedules are tiered by USD notional exposure. For asset group 8, collateral counts at 100% up to $100,000; 80% from $100,000–$250,000; 60% from $250,000–$500,000; 30% from $500,000–$700,000; 10% up to $1 million; and 0% above that. Group 9 uses 100% up to $100,000; then 80% to $150,000; 60% to $200,000; 30% to $400,000; 10% to $600,000; and 0% thereafter. For group 10 only the first $100,000 gets a full credit with any larger exposure having a zero percent collateral ratio. Binance says these haircuts decide how much of each asset counts toward margin.
Binance’s margin changes come on a platform that dominates centralized crypto trading by most measures. Major data trackers show hundreds of listed coins and roughly 1,600 trading pairs with daily spot turnover in the tens of billions of dollars and reserves well above $100 billion in digital assets. Other estimates put combined daily spot-and-futures volume above $200 billion with a user base in the hundreds of millions worldwide.
Binance Holdings Ltd., branded as Binance and founded by Changpeng Zhao and Yi He is widely regarded as the largest digital-asset trading venue by daily volume. Originally based in China before shifting operations offshore it now runs a distributed structure with no single official headquarters serving users worldwide through its main exchange and regional platforms.
