Binance, the largest cryptocurrency exchange by trade volume, has released an important update regarding the collateral ratio of multiple assets. The exchange announced plans to adjust the collateral ratios for FLOKI, TON, DOGS, RENDER, SUN, RARE, and ADX under Portfolio Margin beginning at 06:00 UTC on September 3rd. The correction is expected to be completed within one hour.
Binance Updates Multiple Assets Collateral Ratio
According to the announcement on its official website, FLOKI will see a revised collateral ratio of 40%, for TON, DOGS, RENDER, SUN, and RARE, it will be 30%, while ADX will be set at 20%.
It is significant to remember that the Unified Maintenance Margin Ratio (uniMMR) would be impacted by the collateral ratio. It is recommended that traders periodically monitor the uniMMR to prevent losses or possible liquidation brought on by variations in the collateral ratio.
For context, margin trading allows people to leverage their positions and borrow money using their holdings as collateral, which can improve trading efficiency. However, because possible gains and losses are amplified, this also increases the dangers. It allows traders to profit from both upward and downward market movements by facilitating leveraged long and short positions spanning different digital assets in the spot market.
The percentage at which an asset is accepted as collateral is known as the “collateral ratio.” This is a tiered ratio that could change based on how much margin asset is in the user’s Cross Margin account. Furthermore, this ratio only affects Cross Margin; it does not affect Isolated Margin.
Meanwhile, Binance Pay, a contactless and borderless cryptocurrency payment platform, now supports Eurite’s EURI stablecoin payments. Additionally, it now enables Cardano’s ADA token payments for merchants, allowing for rapid settlements and access to over 30 million users worldwide.
With over 350 cryptocurrencies and digital tokens available for trade, Binance is a well-known cryptocurrency exchange serving a wide range of users. The platform is renowned for its affordable transaction costs and beneficial liquidity choices.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.