Binance is preparing to update the collateral ratio on more than 10 assets under its portfolio margin. The exchange will either raise them or lower them by 10% to 40%. Which assets are affected?
Summary
- Binance will raise or lower the collateral rates for a number of assets on its portfolio margin.
- Collateral rates are the loan-to-collateral ratio attached to a digital asset.
In a recent notice, the major centralized exchange will update the collateral ratio for several digital assets under its portfolio margin. The update will take around 30 minutes to complete, halting trade for the chosen assets temporarily before resuming once the updates are done.
The notice informs traders that the first batch of collateral ratios adjustments will take place on August 5, 2025 06:00 UTC. These digital assets will experience an increase in collateral ratio. Meanwhile, the second batch of assets will see a decrease in collateral rates.
Assets’ collateral rates adjusted on August 5
- VIRTUAL (VIRTUAL): from 30% to 50%.
- HYPER (HYPER): from 10% to 30%.
- BERA (BERA): from 10% to 30%.
- HEI: from 10% to 30%.
- BABY: from 10% to 30%.
- INIT: from 10% to 30%.
On the other hand, the adjustment period for the second batch will be executed on August 8, 2025. Three days following the first batch adjustment on collateral rates.
Assets’ collateral rates adjusted on August 8
- DOT (DOT): from 80% to 75%.
- OP (OP): from 65% to 55%.
- ENS (ENS): from 60% to 50%.
- CHZ (CHZ): from 50% to 40%.
- HOT (HOT): from 50% to 35%.
- LRC (LRC): from 40% to 25%.
Portfolio Margin is a trading mode designed for Binance users that want to trade using increased leverage and have more flexible choices of products. The aforementioned assets are all categorized under Binance’s Portfolio Margin trading series.
What is a collateral ratio?
In terms of Binance Margins, a collateral ratio is used to describe the loan-to-collateral ratio attached to a digital asset. This is the ratio of the value of borrowed assets or debt compared to the value of collateral assets that are used to secure a loan.
This ratio determines the level of trading risk associated with the margin position and can trigger liquidation if it falls below a particular threshold.
The higher the collateral ratio, the less likely Binance will lose money if the trader defaults on a loan. Meanwhile, if the collateral ratio is low, that means there is a higher risk that Binance will lose funds because the amount of assets it has is not enough to cushion the fall if the market moves against the trader.
In addition, the adjustments made by Binance will affect the unified maintenance margin rate or uniMMR. As stated within the notice, users are urged to monitor the changes closely to avoid any potential liquidation or losses that may result from the change of collateral ratio.
Traders can check the collateral ratio and leverage on all portfolio margin assets on the site’s page.
