Binance announced it has reduced Portfolio Margin collateral ratios for SXP and DENT, while also updating leverage and margin tiers for several USDⓈ-M perpetual contracts to align with new risk parameters.
According to Binance, the Portfolio Margin consolidates a user’s Cross Margin, USDⓈ-M Futures, and COIN-M Futures wallets. This allows multiple assets to be treated as joint collateral, with each asset valued at a discounted “collateral rate” rather than its full notional value. The company explained that changes in collateral ratios can bring liquidation thresholds closer if users do not add collateral or reduce exposure.
Binance said that the Portfolio Margin collateral ratio for SXP was reduced from 30% to 10%, and for DENT from 25% to 10%, effective December 12 at 06:00 UTC. The change was completed in approximately 30 minutes. Binance also mentioned that shortly after this adjustment, it revised leverage and margin tiers for NKNUSDT, BRUSDT, 1000000BOBUSDT, DEGOUSDT, and other USDⓈ-M perpetuals. It noted that existing positions were affected and running grid strategies could expire during the update process.
The company’s Portfolio Margin Pro documentation details how tiered collateral rates decrease at higher balance tiers. For instance, USDC/USDT have a 100% collateral ratio up to $40 million (tier value) and 99% above $50 million; BTC is listed at 100% up to $30 million, decreasing to 97.5% up to $50 million and further down to 95% beyond that; BNB/SOL are shown at 100% up to $3 million and drop to 90% above $6 million. These adjustments illustrate why lowering a token’s collateral ratio can significantly reduce usable margin.
Binance is a global cryptocurrency exchange operator founded in 2017 by Changpeng Zhao and Yi He. It offers spot and derivatives trading services including perpetual futures alongside related crypto services. Reuters reported that Binance has indicated it does not maintain a single headquarters location due to its distributed operating model across various jurisdictions.
