Binance Isolated Margin Leverage Adjustment

2023-06-07 07:25

Binance is gradually enhancing the Margin trading interface and expanding its availability to a larger user base in order to improve the overall user experience.

Binance Isolated Margin now supports the leverage adjustment function. You can adjust the leverage level on all isolated trading pairs based on your need.

How to adjust the leverage level?

If you’re using the Binance App:

1. Log in to your Binance App and tap [Trade] - [Margin]. Choose [Isolated] and tap the leverage ratio icon. You’ll see that it’s disabled by default. Toggle on the button next to it to enable the function.

2. Once you turn on the leverage ratio adjustment switch, you can adjust the leverage multiplier. The maximum borrowing limit is based on the corresponding level of the leverage multiplier you selected.

If you’re using the Binance website:

1. Log in to your Binance account and go to [Trade] - [Margin].

2. Under the Isolated Mode, the leverage ratio adjustment is disabled by default. You can enable it anytime.

Please note that if the leverage multiplier is in the middle of two tiers, it will follow the lower tier limit.

For example, when you select 5x for Isolated BTC/USDC, your quote and base asset tier limit will be 26,000 USDC and 1.2 BTC.

When you select 4.5x, your max limit will be a Tier 2 limit of 52,000 USDC and 2.4 BTC, assuming you have enough collateral.

When the leverage adjustment function is off, the system will automatically calculate the maximum amount you can borrow based on the asset in your Isolated Margin account (current logic) following this formula:

(totalAssetInBtc - (Initial Risk Ratio*borrowedInBtc)) / (Initial Risk Ratio-1) / P

Notes:

  • P is the price of borrowed assets against BTC.
  • The system will automatically calculate each tier data and take the applicable Initial Risk Ratio.

For example, if you’re trading on Isolated BTC/USDC and the current BTC price is 25,000 USDC and you hold 2 BTC as collateral with no debt, the maximum USDC borrow amount is:

= (2 - (1.5 * 0)) / (1.5 - 1) / 1/25,000

= 100,000.00 USDC

When the leverage adjustment function is on, the system will calculate the available borrowing amount based on formula below:

Max borrow = MIN { [net assets * (leverage multiplier - 1) - liability 1] / P, (Tier limit - liability 2)}

Notes:

  • Liabilities 1 is the BTC valuation of the total liabilities of the isolated account
  • Liabilities 2 is the amount of liabilities in the borrowed currency
  • P is the price of borrowed assets against BTC

For example, if you hold 2 BTC as collateral, don’t have debt, and selected 9x leverage for Isolated BTC/USDC, the maximum USDC borrow amount is:

= MIN {[2 * (5 - 1) - 0] / (1/25,000), (26,000 - 0)}

= MIN (200,000), (26,000)

Max USDC borrowing amount = 26,000

Please note that the parameters in the above table are accurate as of 2024-11-07, but are subject to change from time to time. You can refer to the Isolated Margin Tier Data page to learn more about Isolated Margin Pairs data.