Binance Cross Margin Collateral Haircuts

To determine your maximum borrow and transfer-out amounts (the maximum amount that can be withdrawn from your Cross Margin account), Binance introduced the “Collateral Value”. Certain margin assets may be valued on a discounted basis using a “Collateral Ratio”, a percentage at which the asset is recognized as collateral. The Collateral Ratio is tiered, it may change as the relevant margin asset amount in your Cross Margin account increases.
Collateral Value refers to the total value of all assets in your Cross Margin account (in USDT), taking into account the relevant Collateral Ratio (the percentage at which the relevant asset is valued).

Please note that the Collateral Value will not impact your Margin Level. It will continue to be calculated based on the total asset value without any haircuts.

Different assets in your Cross Margin account have different Collateral Ratios. Please note that Binance may, from time to time, change the Collateral Ratio at its sole discretion. For the most recent information, please refer to the margin data page.

The below examples demonstrate how the tiered Collateral Ratio affects the calculation of Collateral Value.

Example 1

Scenario 1
User A holds 6,000 BTC in their Cross Margin account and the BTC price is 20,000 USDT.

The Collateral Value is calculated as follows:

USDT notional = 6,000 * 20,000 = 120,000,000 USDT

Tier 1 Collateral Ratio (USDT notional

Tier 2 Collateral Ratio (USDT notional 100,000,000 > 120,000,000) = 97.5%

Collateral Value (USDT) = (100,000,000) * 100% + (120,000,000 - 100,000,000) * 97.5% = 119,500,000 USDT

Example 2

Scenario 2

User A holds 15,000,000 USDT of Token X. The Collateral Value is calculated as follows:

USDT notional = 15,000,000

Tier 1 Collateral Ratio (USDT notional

Tier 2 Collateral Ratio (USDT notional 500,000 > 1,000,000) = 90%

Tier 3 Collateral Ratio (USDT notional 1,000,000 > 2,000,000) = 80%

Tier 4 Collateral Ratio (USDT notional 2,000,000 > 4,000,000) = 60%

Tier 5 Collateral Ratio (USDT notional 4,000,000 > 7,000,000) = 30%

Tier 6 Collateral Ratio (USDT notional 7,000,000 > 10,000,000) = 10%

Tier 7 Collateral Ratio (USDT notional > 10,000,000) = 0%

Collateral Value (USDT) = 500,000 * 100% + 500,000 * 90% + 1,000,000 * 80% + 2,000,000 * 60% + 3,000,000 * 30% + 3,000,000 * 10% + 5,000,000 * 0% = 4,150,000 USDT

Frequently Asked Questions

1. Will my position get liquidated sooner after factoring in the haircut function?

No, your Margin Level will not be impacted by your Collateral Value. It will still be calculated based on the full value of your assets without any haircut.

2. Where can I see my maximum borrow and transfer-out amounts?

You can check the maximum borrow amount on the trading page and the max transfer-out amount on the transfer page.

3. Does the Collateral Ratio apply to both Cross and Isolated Margin?

The Collateral Ratio only applies to Cross Margin. Isolated Margin will not be affected.

4. How will this affect the Portfolio Margin Program?

Binance Portfolio Margin Program users will not be affected by the changes in Collateral Ratios for Cross Margin accounts. Portfolio margin users will still follow the existing haircut rules applicable to the Portfolio Margin Program. Please refer to the Portfolio Margin Collateral Ratio table for more details.

5. Can I check the new maximum borrow and transfer amounts via API?

Yes, you can check the limits via API.