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Overview of delistings on Binance Margin
To protect our users and ensure that listed tokens and trading pairs continue to meet the high level of standards we expect, Binance conducts periodic reviews of each listed token on our margin platform based on our Delisting Guidelines.
Tokens and/or trading pairs may be delisted from Binance Margin due to a variety of factors such as legal and regulatory concerns, unethical practices, and/or poor liquidity and trading volume. Tokens and/or trading pairs may be delisted from Isolated Margin and Cross Margin separately or simultaneously.
How to find out more on scheduled delistings?
Users can find out more information on scheduled delistings of margin tokens and/or trading pairs via:
- Delisting Announcements page: Binance will typically release announcements that outline the schedule for upcoming delistings to inform users of delisting times, affected tokens and/or trading pairs, and any relevant information in advance.
- Margin Data page notice: Notification banners containing upcoming delisting times will be displayed for affected tokens on Cross Margin and trading pairs on Isolated Margin.
- Inmail & email notifications: Once the above-mentioned announcements are released, impacted users will also receive notifications via inmail and email about the scheduled delistings.
- Trading page notice: Notification banners containing upcoming delisting times will be displayed for each affected trading pair that is to be delisted at its corresponding trading page.
- For more information, please read How to View Delisting Information for Tokens & Spot/Margin Trading Pairs on Binance
What happens when margin tokens and/or trading pairs are being delisted?
Users are advised to transfer the tokens to be delisted from their margin accounts to their spot wallets before the scheduled delisting times and/or repay any liabilities of such tokens in full to avoid any potential losses.
When a token has been scheduled for delisting, users will no longer be able to transfer that token via manual transfers and Auto-Transfer Mode into their margin accounts. However, if users hold outstanding liabilities of that token, they may only manually transfer up to the amount of liabilities of that token into their margin accounts, less any collateral already available.
For Cross Margin:
When a margin token and/or trading pair is being delisted, trading will cease for that token and/or trading pair. All open orders on affected trading pairs will be canceled. Binance Margin will first repay any liabilities of the token to be delisted in users’ Cross Margin accounts using any available collateral of the same token in the same account.
Once repayments are completed, if these accounts no longer hold any positions for that token, the delisting process will end there. Otherwise, users end up only holding that token in the form of either collateral or liabilities:
1. Cross Margin accounts only holding tokens to be delisted in the form of collateral
If the Collateral Margin Level (CML) of that account is at or above 2, these tokens will be transferred to users’ Spot Wallets up to the point when CML reaches 2. After the transfer is completed, or if the CML is below 2 to begin with, market sell orders are placed on the delisted tokens until these positions are fully closed. For collateral amounts valued at 0.0012 BTC or below, BNB Convert will be used instead to convert remaining amounts into BNB.
An exception to this rule is when a user holds collateral and liabilities of the same tokens (other than the token that is to be delisted), and that the collateral amount for each of these tokens are larger than the liabilities of the corresponding tokens. In this case, all liabilities will be repaid first with the available collateral, and then the token that is to be delisted will be transferred out.
Assuming MATIC is a token that will be delisted:
- Example 1: User A has $50 USDT and $80 worth of MATIC as collateral, and $50 worth of BNB in liabilities. The CML is 2.6. $30 worth of MATIC will first be transferred out, such that CML becomes 2. Since no more MATIC can be transferred out without causing CML to fall below 2, the remaining $50 worth of MATIC will be sold into $50 USDT (as an example). MATIC positions are fully closed and the delisting process ends here.
- Example 2: User A has $50 USDT, $50 worth of BNB and $40 worth of MATIC as collateral, and $40 USDT and $40 worth of BNB in liabilities. The CML is 1.75. Since no more MATIC can be transferred out without causing CML to fall below 2, and all liabilities can be repaid using existing collateral without the need for trading, the system will trigger a full repayment of these liabilities. Without any more liabilities in the account, all remaining MATIC collateral will be transferred out.
2. Cross Margin accounts only holding tokens to be delisted in the form of liabilities
All remaining open orders in users’ Cross Margin accounts will be canceled at the scheduled delisting time unless their CML is at or above 2, in which case these open orders will not be canceled. Market sell orders are then placed to fully repay liabilities of the tokens to be delisted using other collateral assets in users’ accounts.
Assuming CVP is a token that will be delisted:
- Example 1: At CVP’s scheduled delisting time, user A has $10,000 USDT as collateral, borrowed $9,000 worth of CVP with an open order of BTC/USDT pair with $10,000 USDT notional value. The CML is 2.22. Since CML >2, the BTC/USDT open order will not be canceled.
- Example 2: At CVP’s scheduled delisting time, user B has $9,000 worth of CVP as collateral at its notional haircut value, borrowed $10,000 USDT, as well as an open order of BTC/USDT pair with $10,000 USDT notional value. The CML is 1.9. Since CML ≤2, the BTC/USDT order will be canceled.
The delisting process ends when no collateral or liabilities of the delisted tokens remain in users’ margin accounts.
For Isolated Margin:
When an Isolated Margin trading pair is being delisted, trading will cease for that trading pair. All open orders on these pairs will be canceled. Binance Margin will first repay any liabilities of the token to be delisted in users’ Isolated Margin accounts using any available collateral of the same token in the same account.
Once repayments are completed, any remaining liabilities will first be settled in full using collateral in the accounts. Lastly, any remaining collateral will then be transferred into users’ spot wallets. The delisting process ends when no collateral or liabilities of the delisted tokens remain in users’ margin accounts.
Frequently Asked Questions
1. What considerations does Binance Margin have before deciding to delist a token and/or trading pair?
Binance considers a variety of factors when conducting delisting reviews. Here are some examples:
- Legal/Compliance risks: Privacy projects, tokens under global/regional regulatory issues, etc.
- Ongoing concerns and perceived risks of specific token projects: Low user adoption, continuity issues (lack of development, team absence), or incidents (e.g. team members arrested, hacks), etc.
- Market risks: Poor liquidity, low market capitalization, etc.
- Ethical risks: Evidence of fraudulent or market abuse practices, etc.
2. What happens to my tokens during and after delisting on Margin?
At the scheduled time of delisting for tokens and/or trading pairs, your collateral or liabilities of the affected tokens and/or trading pairs in your margin accounts will be fully closed according to the process described above. After delisting, you may still have remaining tokens in your spot wallet that have been transferred out of your margin wallet.
3. Are any of my other Cross Margin positions affected by token delisting processes?
Other tokens that you hold in your Cross Margin account may be used to buy the tokens to be delisted in order to repay outstanding liabilities of the delisted token.
Disclaimer and Risk Warning: Digital token prices are subject to high market risk and price volatility. The information provided does not constitute, in any way, a solicitation or recommendation or inducement to buy or sell the products. The value of your investment may go down or up, and you may not get back the amount invested. Cross-margining contributes to providing greater leverage than a regular margin account, and greater leverage creates greater losses in the event of adverse market conditions. There is increased risk that a user's cross-margin positions will be liquidated involuntarily, causing possible loss. Comments and analysis do not constitute a commitment or guarantee on the part of Binance. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. You should only invest in products you are familiar with and where you understand the risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material should not be construed as financial advice. This product may not be available in certain countries and to certain users. This content is not intended for users/countries to which prohibitions/restrictions apply. For more information, see our Terms of Use and Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.