Binance currently allows VIP 3 and above users to use bStocks as collateral in Cross Margin and Portfolio Margin Accounts. To further expand our services, Binance is now opening the bStocks collateral feature to VIP 0-2 users, with additional risk control mechanisms in place to protect user assets.
When VIP 0-2 users use bStocks as collateral, Binance will monitor the holdings and position ratios of medium-liquidity or low-liquidity assets in their Cross Margin and Portfolio Margin Accounts. If the proportion of medium-liquidity or low-liquidity assets exceeds a certain threshold, the system will implement risk restriction measures on the account to prevent bStocks collateral from suffering significant losses due to the price volatility of these assets.
Asset liquidity classification
For accounts holding bStocks as collateral, other cryptocurrency assets are classified into the following three categories based on their prudential quality tier, which is calibrated to volatility, tail drawdown, liquidity, and track record:
High-liquidity assets: Assets with a Portfolio Margin (PM) collateral rate ≥ 60%.
Medium-liquidity assets: Assets with a Portfolio Margin (PM) collateral rate ≥ 40% and < 60%.
Low-liquidity assets: Assets with a Portfolio Margin (PM) collateral rate < 40%.
Medium-liquidity and low-liquidity assets are subject to greater price volatility and may cause a significant impact on the overall risk level of your account. The collateral ratio for each asset may be adjusted from time to time. It is possible that a high-liquidity asset may be reclassified as a medium-liquidity or low-liquidity asset, and vice versa. Please refer to the Margin Data page for the latest information.
Risk restriction trigger conditions
Risk restrictions will be triggered when your account simultaneously meets all of the following conditions:
Account's current VIP level = 0, 1 or 2, and the account holds bStocks as collateral;
The ratio of bStocks collateral-rate-adjusted net asset value ≥ 60% and the bStocks collateral-rate-adjusted net asset value ≥ 100 USD,
Ratio of bStocks collateral-rate-adjusted net asset value = bStocks collateral-rate-adjusted net asset value / total account collateral-rate-adjusted net asset value.
Effective leverage on low-liquidity asset net exposure exceeds 2 times;
OR;
Effective leverage on medium-liquidity- asset Net exposure exceeds 5 times
Effective leverage = Σ Low-liquidity assets’ Net exposure (Collateral-rate-adjusted net asset value + Futures Notional Value) / Total collateral-rate-adjusted Equity
Effective leverage = Σ Medium-liquidity assets’ Net exposure (Collateral-rate-adjusted net asset value + Futures Notional Value) / Total collateral-rate-adjusted Equity
Arbitrageurs can offset exposure when positions are hedged between Margin and Futures.
Only Portfolio Margin Accounts include futures positions in the calculation.
The Futures Notional Value is positive if there is a long position for an asset, and negative if there is a short position for the same asset.
Risk restriction measures
Once risk restrictions are triggered, your account will be subject to the following restrictions simultaneously:
Cross Margin Account:
You are not allowed to buy or borrow medium-liquidity or low-liquidity assets, but may transfer in some assets to mitigate liquidation risk.
You may only use transfer-out or position-closing functions to reduce medium-liquidity or low-liquidity asset positions (including both assets and liabilities).
Transferring more bStocks into your account is prohibited.
The following exceptions apply:
If you already have medium-liquidity or low-liquidity asset liabilities, you are permitted to buy an equivalent amount of the asset for repayment purposes; purchasing in excess of the liability amount is not allowed.
You may also transfer in any medium-liquidity or low-liquidity assets to repay liabilities
Portfolio Margin Account:
In addition to the Cross Margin restrictions above, no new futures positions may be opened for any asset (not limited to bStocks, medium-liquidity, or low-liquidity assets). Only reduce-only mode is permitted. bStocks and medium-liquidity or low-liquidity assets are not eligible for auto top-up in Cross or Portfolio Margin Accounts.
Please note: For high-liquidity assets, Cross Margin transfer and trading functions, as well as Portfolio Margin position opening and closing functions, remain unrestricted.
Lifting of risk restrictions
Risk restriction measures will remain in effect for a short period. The system will continuously monitor your account's risk status, and once the trigger conditions are no longer met, the restrictions will be automatically lifted. longer met, the risk restrictions will be automatically lifted.
You may reduce risk and lift restrictions through the following methods:
Reduce medium-liquidity or low-liquidity asset exposure: Close, sell, or transfer out medium-liquidity or low-liquidity assets, repay medium-liquidity or low-liquidity asset liabilities from the Margin Account, or close medium-liquidity or low-liquidity assets’ futures positions;
Transfer in high-liquidity assets: Optimize your account collateral structure and enhance risk resilience;
Upgrade to VIP 3: Your account will no longer be subject to this risk control restriction. For the VIP upgrade process, please refer to Binance VIP & Institutional Services;
Reduce bStocks proportion: Transfer out a portion of bStocks to bring the ratio below the threshold. After transfer-out, you may continue to trade other crypto assets without being affected by this restriction.
Please note: Binance will send e-mail notifications regarding risk restriction triggers and lifts. Please check your registered e-mail regularly.
1. Which assets are classified asMedium-liquidity or low-liquidityassets?
Medium-liquidity assets are cryptocurrency assets with a Portfolio Margin Account collateral rate of between 40% (inclusive) and 60% (exclusive), low-liquidity assets are cryptocurrency assets with a Portfolio Margin Account collateral rate below 40%.
Please refer to the Margin Data page for the latest information.
2. How do I lift risk restrictions after they are triggered?
You can reduce account risk by reducing medium-liquidity or low-liquidity asset holdings and futures positions, adding high-liquidity assets, or repaying liabilities. The system will continuously monitor your account's risk status, and if the trigger conditions are no longer met, the risk restrictions will be automatically lifted. Once you upgrade to VIP 3, your account will no longer be subject to this risk control restriction.
3. Can I still trade during the risk restriction period?
During the risk restriction period, you may reduce existing positions in medium-liquidity or low-liquidity assets to lower risk, but you cannot add new holdings, borrowings, or futures positions in those assets. In the Portfolio Margin Account, futures positions for any asset may only be reduced, not increased. Trading of high-liquidity assets remains unaffected.
4. Under what circumstances will forced liquidation be executed?
Risk restrictions do not automatically trigger forced liquidation on your Margin Account. Risk restrictions only constrain trading activities, including opening new positions, borrowing, and adding new futures positions. Forced liquidation will be executed when your margin level breaches the liquidation threshold, which is independent of risk restrictions.
5. Will risk restrictions affect my other accounts?
Risk restrictions apply only to Cross Margin and Portfolio Margin Accounts held by users below VIP 3 that use bStocks as collateral. Other Margin Accounts that do not hold bStocks as collateral, or accounts of VIP 3 and above users, are not affected. You may continue to trade normally via other sub-accounts without being subject to the risk restrictions described in this notice.
6. If I upgrade to VIP 3, will I still be affected by such restrictions?
Once you upgrade to VIP 3 or above, risk restriction measures will be automatically lifted.
7. Will VIP 3 and above users be subject to such risk restrictions after downgrade?
Yes. If you are downgraded below VIP 3 and the trigger conditions are met, your Cross Margin and Portfolio Margin Accounts will be subject to restrictions.
8. Which assets are restricted from auto top-up during risk restrictions?
During risk restrictions, bStocks and medium-liquidity or low-liquidity assets are not eligible for auto top-up in Cross Margin and Portfolio Margin Accounts. Only high-liquidity assets can be used for auto top-up. Please reduce leverage and exit this mode promptly to avoid unnecessary liquidation during extreme market volatility.
9. How will I be notified when risk restrictions are triggered or lifted?
Binance will send e-mail notifications to your registered e-mail address when risk restrictions are triggered and when they are lifted. Please ensure your e-mail is up to date and check your inbox regularly.
10. How long do risk restrictions last?
Risk restriction measures will remain in effect for a short period. After that, the system will continuously monitor your account. Once the trigger conditions are no longer met, restrictions will be automatically lifted. There is no fixed end time, it depends on when your account returns to a safe risk level.
11. What happens to my existing positions when risk restrictions are triggered?
Your existing positions will not be forcibly closed by the risk restrictions themselves. However, you will not be able to open new positions in medium-liquidity or low-liquidity assets. In Portfolio Margin, futures positions for any asset can only be reduced, not increased. Forced liquidation may still occur if your margin level breaches the liquidation threshold, independent of risk restrictions.
12. If my asset's collateral rate changes and it moves from high-liquidity to medium-liquidity, will I be affected?
Yes. If an asset you hold is reclassified from high-liquidity to medium-liquidity or low-liquidity, it will be subject to the risk restriction rules. This may change your effective leverage and potentially trigger risk restrictions. Please monitor the Margin Data page regularly for classification updates.
13. How to calculate collateral-rate-adjusted net asset value and effective leverage?
Collateral-rate-adjusted net asset value is the value of an asset after applying its collateral rate, used to calculate bStocks proportion and effective leverage. The collateral rate applies to positive net positions (reducing value) but not to net liabilities (full amount counted).
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