Leading cryptocurrency exchange Binance Futures announced changes to its platform, including the delisting of several perpetual futures contracts and adjustments to leverage and margin requirements. This move, which will be effective from mid-May 2024, aims to facilitate offers and ensure the stability of the trading ecosystem.
Five contracts affected by Binance announcement
Specifically, Binance Futures will delist five USDⓈ-Margin perpetual futures contracts: STPTUSDT, SNTUSDT, MBLUSDT, RADUSDT, and CVXUSDT. These contracts allow for leveraged trading on cryptocurrency pairs with US Dollar Tether (USDT) as the settlement currency. The delisting process will involve automatic settlement on specified dates, essentially closing out all open positions users have in these contracts.
The exchange cites its commitment to “integrity and efficiency” as the reason for the delisting. This indicates that perpetual contracts for these cryptocurrencies may not meet Binance’s liquidity or trading activity standards. Delisting less popular contracts helps Binance focus resources on providing a healthy and stable trading environment for users.
What about leverage and margin adjustments?
Along with the delisting, Binance Futures will also make adjustments to leverage and margin tiers for affected contracts. These adjustments apply to coins even before delisting and affect current positions. Users are asked to closely examine these changes and proactively adjust their positions and leverage levels to avoid potential liquidations. Below are the important dates users should know:
- 6 May 2024, 13:30: Adjustments to leverage and margin tiers will come into effect for affected contracts.
- May 13, 2024, 11:30: Users cannot open new positions for STPTUSDT, SNTUSDT and MBLUSDT contracts.
- 13 May 2024, 12:00: STPTUSDT, SNTUSDT and MBLUSDT contracts are automatically debited and effectively removed from the platform.
- May 14, 2024, 11:30: Users cannot open new positions for RADUSDT and CVXUSDT contracts.
- 14 May 2024, 12:00: Automatic settlement for RADUSDT and CVXUSDT contracts occurs and is effectively removed from the platform.
To avoid undesirable consequences, Binance recommends users close all open positions on the affected contracts before the automatic settlement dates. The exchange states that it reserves the right to impose further protective measures for these contracts without prior warning. These measures may include adjusting leverage limits, position values and maintenance margins. Additionally, the exchange may update funding rates or even use the “Last Price Held” mechanism to calculate the Mark Price, which is an important factor in determining profit or loss for leveraged positions.
What impact will this development have on users?
This news may be of interest to users who hold positions in the affected contracts or are actively trading these specific cryptocurrencies. Users should carefully review Binance’s delisting and margin adjustment announcements to understand the potential consequences to their holdings. By taking proactive measures and becoming familiar with upcoming changes, users can effectively manage their positions and reduce potential risks.
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