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.
