Binance announced on its website that it updated collateral ratios for several assets under its VIP Loan product, effective November 12, 2025, at 00:00 UTC. This update prompts users to monitor their loan-to-value ratios to avoid potential liquidations.
According to Binance’s official announcement, the changes will apply to assets including DYDX (dYdX), ATOM (Cosmos), ACE (Fusionist), GRT (The Graph), CHZ (Chiliz), AEVO, THETA (Theta Network), GMT, 1000SATS, MEME, ONE (Harmony), LUNC (Terra Classic), LUNA (Terra), HOOK (Hooked Protocol), and MAGIC (Treasure). The update is part of Binance’s routine risk-management framework for over-collateralized loans. It aims to align collateral factors with current asset volatility and liquidity conditions. Binance explicitly warned that amendments to these collateral ratios may affect users’ loan-to-value metrics and emphasized that users must monitor their positions to avoid liquidation or losses.
The announcement further said that users borrowing via VIP Loan must account for the revised collateral ratios which effectively reduce the borrowing value of listed assets once the change takes effect. For example, if an asset’s collateral factor is lowered, a borrower must post more of that asset or reduce the loan size to maintain the same loan-to-value ratio; failing to adjust may trigger margin calls or liquidation. Binance also reinforced that it is not responsible for losses stemming from users’ failure to adjust collateral under the new structure.
In commentary around the announcement, a broader market-analysis piece highlighted that major crypto exchanges—including Binance—are increasingly recalibrating collateral requirements in response to asset-specific risk profiles and macro volatility. These changes signal the exchange’s effort to maintain financial stability and protect lending services from mismatched collateral risk. Market participants are thus advised to reassess leveraged exposures when such updates are announced.
According to Binance’s official About page, Binance is a global blockchain ecosystem and cryptocurrency exchange founded in 2017 by Changpeng “CZ” Zhao. The company offers a broad range of services—spot trading, margin and futures, staking, savings, and institutional products like VIP Loan—and states its mission is to build infrastructure that increases the freedom of money worldwide.
