How Does Auto-Exchange Work in the Multi-Assets Mode?

Auto-Exchange is a mechanism to ensure that the Asset Wallet Balances in the USDⓈ-M Futures Wallet do not fall below a certain threshold.

When Auto-Exchange is triggered, all positive balance assets under the USDⓈ-M Futures Wallet are automatically and proportionally converted at market price by the Auto-Exchange service engine to cover the corresponding Asset Wallet Balance deficit.

For Regular and VIP 1 Users, Auto-Exchange Threshold will be -5,000 USDT or -5,000 USDC or -5,000 BNFCR or -0.1 BTC; the Threshold will be -10,000 USDT or -10,000 USDC or -5,000 BNFCR or -0.1 BTC.

1. When the user’s Asset Wallet Balance is lower than the Auto-Exchange Threshold, the Auto-Exchange service engine will proportionally convert other assets in the USDⓈ-M Futures Wallet to cover the deficit.

For Regular and VIP 1 Users, when Asset Wallet Balance is less than Auto-Exchange Threshold (-5,000 USDT/USDC/BNFCR or -0.1 BTC). For all other users, when Asset Wallet Balance is less than Auto-Exchange Threshold (-10,000 USDT/USDC or -5,000 BNFCR or -0.1 BTC).

2. In the case of liquidation, Auto-Exchange will be immediately triggered if the Asset Wallet Balance in the USDⓈ-M Futures Wallet is insufficient to cover the deficit.

3. When there is a negative balance in User’s USDⓈ-M Futures Wallet with no existing positions or open orders, the system will continuously calculate the LTV (Loan-To-Value) ratio and trigger Auto-Exchange when LTV ≥ 0.995.

Auto-Exchange can help balance your account and increase the utilization rate of funds in case of losses.

While Auto-Exchange doesn’t charge any fees, the following haircut rates (also referred to as the collateral rate) apply to the Auto-Exchanged assets to mitigate the liquidity risks:

You’re trading in the Multi-Assets Mode. Your USDⓈ-M Futures Wallet has a positive BTC balance and a negative USDC balance.

Let’s assume your USDC balance falls to -20,000 USDC, which triggers the Auto-Exchange (below the -10,000 USD threshold), taking into account the 2.5% haircut rate in the process.

Subsequently, 20,000 USDC / 97.5% = 20,513 USDC of your BTC balance will be converted to USDC to cover the negative USDC balance in the USDⓈ-M Futures Wallet.

Under the Multi-Assets Mode, you don’t have any existing position or open order, and the USDⓈ-M Futures Wallet balance is 1 BNB + (-600) USDC

Your LTV = abs(-600)/(700 * (1 - 5%)) = 0.90 < 0.995, Auto-Exchange will not be triggered;

Your LTV = abs(-600)/(600 * (1 - 5%)) = 1.05 ≥ 0.995, Auto-Exchange will be triggered. Your BNB will be converted to USDC to clear the negative USDC balance.

To avoid triggering Auto-Exchange, you can convert or transfer margin assets to the USDⓈ-M Futures Wallet to maintain the negative balance below the -10,000 USD threshold. If you don't have any existing positions or open orders and there is a deficit in your USDⓈ-M Futures Wallet, you are advised to convert or transfer sufficient margin assets to the USDⓈ-M Futures Wallet in a timely manner to prevent the account LTV from going above 0.995, which would trigger Auto-Exchange.

To reduce risks, Binance may temporarily adjust the Auto-Exchange threshold and execute the conversion automatically. You may notice that the balance of a certain asset in your USDⓈ-M Futures Wallet is negative. However, this does not necessarily mean the balance of your USDⓈ-M Futures Wallet is at a loss.