Main contents
BFUSD is a new and exclusive reward asset from Binance that enables flexible margin Futures trading.
Hold BFUSD to receive daily USDT rewards and increase your rewards by trading USDⓈ-M Futures with BFUSD as collateral — all rewards are funded by Binance's delta hedging and ETH staking strategies.
The reserve fund, initially backed by 1 million USDT, protects the BFUSD hedge strategy from negative Funding Rates during challenging market conditions.
This is a general notice. The products and services mentioned here may not be available in your area.
Introducing BFUSD, Binance’s exclusive reward-based margin asset designed to support Futures trading while providing users with the opportunity to earn additional rewards. Currently available exclusively on Binance, BFUSD offers a unique way to maximize trading capital by awarding daily USDT rewards. These daily rewards come from the earnings of Binance’s investment and hedging strategies. You can earn passive income simply by holding BFUSD in your USDⓈ-M Futures Wallet. Users who trade BFUSD on USDⓈ-M Futures will receive greater rewards. Read on to learn how BFUSD works and how to best use it.
What is BFUSD?
BFUSD is a margin asset with bonus earning benefits, created exclusively for Binance Futures users.
Users can buy BFUSD with USDT. BFUSD will help you earn passive income when using BFUSD as a margin asset in USDⓈ-M Futures trading. Just by holding BFUSD in the USDⓈ-M Futures Wallet, you will be able to receive daily USDT rewards, in addition, when trading with BFUSD on USDⓈ-M Futures, you can also receive larger daily USDT rewards.
Users can exchange BFUSD for USD stablecoins. Binance uses a delta neutral strategy to maintain a hedge and investment strategy that supports BFUSD, making it a stable component of your margin. This approach provides flexibility and security.
How does BFUSD work?
BFUSD generates rewards funded by Binance's investment and hedging strategies, primarily delta hedging and Ethereum (ETH) staking. These investment and hedging strategies generate passive income, providing rewards to BFUSD holders.
Where does the BFUSD bonus come from?
Delta Hedging: Binance uses a delta neutral strategy by hedging crypto assets (such as Ethereum) between the Spot and Futures markets. This is a way of taking offsetting positions to mitigate the risk associated with price volatility, in order to collect funding fees without significant market risk.
Staking ETH: Binance uses the proceeds of the BFUSD sale to purchase crypto assets (such as ETH), which are then staked to earn rewards. Those staking rewards contribute to the pool of available earnings that are rewarded to BFUSD holders.
Daily Reward Rate
Every day, Binance calculates the Daily Reward Rate based on the income generated from the previous day's investment activities (after deducting fees).
Allocation: A portion of the daily reward is allocated as USDT rewards to BFUSD holders. An additional portion is allocated to BFUSD holders who actively traded USDⓈ-M Futures that day. The remainder of the daily reward is allocated to the Reserve Fund (see below).
Reserve fund
To protect users from negative funding rates, Binance has established a Reserve Fund with an initial capital of 1 million USDT. This fund serves as a reserve fund when facing unfavorable market conditions, such as negative funding rates. The Reserve Fund is continuously replenished from a portion of the BFUSD daily rewards, growing proportionally with BFUSD's investment and hedging strategies, while ensuring protection for users from negative funding rates.
Please note that the reserve fund funding rate will be adjusted by Binance from time to time.
How to buy BFUSD
The process of buying BFUSD is very simple:
Login: Access your Binance account.
Navigation: Go to Futures section and select BFUSD Rewards.
Buy: Enter the amount of USDT you want to convert to BFUSD, make sure you have enough USDT balance in your USDⓈ-M Futures Wallet.
Confirm: Review the terms and conditions, then confirm the transaction.
Please note that currently, USDT is the only supported currency for purchasing BFUSD, so make sure your USDⓈ-M Futures Wallet has enough USDT. Additionally, to use BFUSD as a margin asset, you will need to enable multi-asset mode, which allows you to use multiple assets as margin and enhance your trading flexibility.
Your maximum BFUSD purchase limit is determined by your Binance VIP level, so please check that the amount of BFUSD you intend to purchase fits within this level. Transaction fees may apply to buying and redeeming BFUSD. These fees will be added to the conversion quote shown to you before you confirm the trade.
How to use BFUSD
BFUSD is more than just a reward asset — it’s a powerful addition to your trading toolkit. You have the flexibility to use BFUSD as a margin asset to increase your trading activity while still earning daily rewards. Here’s a more detailed guide on how to increase your earnings from BFUSD — from setting up BFUSD as a margin asset to converting it back to the stablecoin USD.
Use BFUSD as Margin in Futures Trading. Think of BFUSD as your trading powerhouse. Users can use BFUSD as margin to directly support Futures positions without conversion. To do so, simply remember to enable multi-asset mode in your account settings — this allows BFUSD to be credited as margin, making your capital more profitable.
Earn Daily Rewards with BFUSD. Turn your trades into a passive income opportunity. Simply holding BFUSD in your USDⓈ-M Futures Wallet will qualify you for daily USD stablecoin rewards based on the Base Rate. If you complete at least one USDⓈ-M Futures trade per day, you will qualify for rewards based on the Boost Rate. These rewards will be automatically credited to your Futures Wallet the following day, so every trading day can result in a new reward boost.
Exchange BFUSD for USD stablecoins. Ready to convert your BFUSD back? Redeeming BFUSD is equally simple. Log in to your account, go to Futures and select BFUSD Rewards. Here, click on the Redeem option, enter the amount of BFUSD you want to convert back to USD stablecoins, review any associated fees, accept the terms and confirm. The USD stablecoins will be credited to your USDⓈ-M Futures Wallet.
Please note that at launch we only support USDT purchases and redemptions.
Summary of content
BFUSD offers an opportunity to enhance the trading experience for Binance Futures users. By integrating BFUSD into your strategy, you can use BFUSD as a reward-bearing margin asset, earn daily USD stablecoin rewards, and maintain complete flexibility with your funds. The ability to use BFUSD as a margin asset allows you to maximize your trading capabilities while benefiting from an additional source of passive income.
Remember that BFUSD is only available on Binance, the world's leading crypto derivatives platform. This underscores our commitment to innovation and provides users with more options to optimize their trading. Learn about the advantages of BFUSD and see how BFUSD can contribute to your Binance Futures trading experience!
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Disclaimer: You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. The reward rate (including base rate and boost rate) is calculated daily and is shown as an annualized yield (APY) for illustrative purposes only. The reward rate does not represent the performance of BFUSD over any period other than the specific date specified and is not indicative of future performance. The reward rate is likely to fluctuate on a daily basis. Past performance is not a reliable indicator of future performance. You should only invest in products that you are familiar with and understand the risks. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance, and consult an independent financial advisor before investing. You may not withdraw or use BFUSD for any purpose other than margin in your Binance Futures account. Redemption restrictions may apply, which may affect your ability to redeem BFUSD for a supported USD stablecoin. This document should not be construed as financial advice. For more information, please refer to our Terms of Use, BFUSD Terms and Risk Warning. To learn more about how to protect yourself, visit our Responsible Trading page.
