Updated April 2024
1. Trading Bots
By participating in trading you acknowledge that you have read, understood and accepted all of the terms and conditions in these terms (the “Trading Bots Terms”), and you acknowledge and agree that you will be bound by and will comply with these Trading Bots Terms. If you do not understand nor accept these Trading Bots Terms in their entirety, you should not participate.
These Trading Bots Terms apply to the use of any trading tools available through the Binance Platform, which enables Users to place orders for the execution of spot and/or futures transactions by way of a predetermined execution methodology (such trading tools “Trading Bots” (alternatively referred to within the Binance Platform as “Strategy Trading” tools)). The Trading Bots that Binance may make available to Users include (but shall not be limited to): Spot Grid Trading, Futures Grid Trading, Time-Weighted Average Price (TWAP) and Volume-Weighted Average Price (VP) algorithmic trading tools, Rebalancing Bot and Spot Dollar-Cost-Average (DCA) (each as described further below).
These Trading Bots Terms form part of, and shall be read together with, each of the Binance Terms of Use, the Binance Spot Trading Terms of Use, and the Binance Futures Service Agreement (the “Service Agreements”). Capitalized terms used herein but not otherwise defined shall have the meaning given to them in the Service Agreements, as the context requires. Where these Trading Bots Terms stand in conflict with other terms and conditions as set out in the Service Agreement, these Trading Bots Terms shall prevail unless otherwise specified.
2. General disclaimer
In offering Trading Bots to User, Binance is not providing any investment advice or recommending any particular Trading Bot, trading strategy and/or trading parameter as appropriate and/or suitable for User. User shall be solely responsible for determining whether or not to make use of any Trading Bots and for selecting an appropriate feature, trading strategy and/or parameters in light of their investment objectives, risk tolerance, financial situation and needs. Binance makes no representation or warranty as to the outcome of the use of any Trading Bot and will not be liable to User for any loss that might arise from or in connection with their use of any Trading Bot.
3. Spot Grid and Futures Grid Trading
User may be permitted to create spot and/or futures grid trading strategies through the Binance Platform, so as to enable transactions in spot and/or futures products to be executed automatically by way of algorithm, based on certain parameters as selected by the User (each, a “Grid Trading Strategy”). User acknowledges that the parameters selected will dictate the operation of the applicable Grid Trading Strategy and that User shall be entirely responsible for determining and confirming any parameters selected and/or any applicable execution methodology to be applied to any Grid Trading Strategy, regardless of whether such parameters and/or execution methodology are suggested or pre-populated on the Binance Platform, replicated from an existing Grid Trading Strategy created by another User, or independently populated by User themselves.
User shall be responsible for ensuring that any Grid Trading Strategy selected or otherwise created is appropriate for User in light of their own investment objectives and will be consistent with any limitations or conditions that may apply to User with respect to the execution of any transaction. Use of any Grid Trading Strategy is at User’s own discretion and Binance does not determine the suitability of any Grid Trading Strategy or parameter for User or make any representation or warranty that any Grid Trading Strategy will be profitable. Any risk associated with a Grid Trading Strategy resides solely with User, not Binance.
User further acknowledges that the past performance of any Grid Trading Strategy is not indicative of future results and that the future performance of any Grid Trading Strategy may not be profitable or equal to past performances.
Furthermore, User acknowledges that Binance employs multiple risk mitigation strategies, including manual and automated circuit breakers, as well as kill-switch controls. These features can activate in the event of regulatory restrictions, market disruption, and/or systems failure, potentially canceling any Grid Trading Strategy in place. Binance shall not be liable to User in respect of any losses incurred in connection with the cancellation of any Grid Trading Strategy.
Given the associated risks, Users shall be responsible for ensuring that they fully understand the risks of any Grid Trading Strategy and for conducting thorough due diligence to ensure that this feature is suitable for them.
Transactions entered into via a Grid Trading Strategy may incur trading fees. User should consider the impact of trading fees on the performance of the relevant strategy before deciding to use/create any Grid Trading Strategy.
4. Time-Weighted Average Price Algorithm (TWAP) and Volume-Weighted Average Price Algorithm (VP)
User may be permitted to submit orders for certain transactions based on the use of a Time-Weighted Average Price Algorithm (TWAP) and/or Volume-Weighted Average Price Algorithm (VP) (together, “TWAP and/or VP Orders”).
The risks associated with any TWAP and/or VP Order reside with User, not Binance. In particular, User shall be responsible for setting all relevant parameters of any TWAP and/or VP Order.
User acknowledges that Binance does not guarantee the full execution of any TWAP and/or VP Order and that the execution of any TWAP and/or VP Order is based on factors outside of Binance’s control. For example, if the market price of the relevant Digital Asset(s) referenced by any TWAP and/or VP Order moves considerably or liquidity is insufficient during the execution of a TWAP and/or VP Order, the algorithm may not achieve full completion. Further, if the market becomes distressed, the algorithm may fail to complete the TWAP and/or VP Order before the specified end time. Thus, execution of any TWAP and/or VP Order is and will always be liquidity-dependent, with no guarantee for best price execution or execution of the order in full.
User acknowledges that Binance employs multiple risk mitigation strategies, including manual and automated circuit breakers, as well as kill-switch controls. These features can activate in the event of market disruption and/or systems failure, potentially canceling any TWAP and/or VP Order early before the order has been fully filled. Binance shall not be liable for any loss incurred by User due to the cancellation or failure to execute a TWAP and/or VP Order, whether partially or fully.
No representation is being made or implied that submitting any TWAP and/or VP Order will guarantee a better overall execution price than one or more regular market orders. User is responsible for ensuring that User fully understands the risks associated with any TWAP and/or VP Order execution and for conducting thorough due diligence to ensure that this feature is suitable for them.
5. Rebalancing Bot
User may be permitted to use the Rebalancing Bot service available through the Binance Platform to create a trading strategy to automatically execute spot transactions based on certain parameters as selected by User (each, a “Rebalancing Bot Strategy”). User may create a Rebalancing Bot Strategy by selecting applicable trading parameters, confirming or amending the preset category portfolios, and setting applicable rebalancing parameters. Any investment decision, portfolio selection, and parameter selection, in all cases, will be made solely by User.
By providing the Rebalancing Bot service, Binance does not determine the suitability of any portfolio or Rebalancing Bot parameter for User, regardless of whether such portfolio or parameter is suggested or pre-populated on the Binance Platform or independently populated by User. Furthermore, Binance makes no representation or warranty that any Rebalancing Bot Strategy will perform as expected or be profitable for User. Any risk associated with a Rebalancing Bot Strategy resides solely with User. Binance shall not be responsible for any losses incurred in connection with any Rebalancing Bot Strategy.
User acknowledges that the past performance of a Rebalancing Bot Strategy is not indicative of future results and agrees that the future performance of any Rebalancing Bot Strategy may not be profitable or equal to past performance.
Transactions entered into via a Rebalancing Bot Strategy may incur trading fees. User should consider the impact of trading fees on the performance of the relevant portfolio before deciding to use the Rebalancing Bot and setting any relevant parameters.
Category portfolios (referred to on the Binance Platform as “AI Rebalance”) are generated based on relevant Digital Assets’ categories and market caps. Binance assigns one or more categories to each Digital Asset based on the main characteristics of that particular Digital Asset and its associated project. For category portfolios, Binance compiles preset portfolios for certain Digital Asset categories, encompassing the Digital Assets that make up the top 30% of the relevant category’s total market cap. The number of Digital Assets in a category portfolio will be between 2 and 10. This number depends on the market dynamics within the relevant category. Binance reserves the right to change the methodology for assigning categories and compiling category portfolios at any time at its sole discretion.
Binance makes no representation or warranty about the accuracy of the allocation of categories to Digital Assets or about the representativeness of any category portfolio of the associated sector.
6. Spot Dollar-Cost-Average (DCA)
User can use the Spot Dollar-Cost-Average (“DCA”) bot to place orders in accordance with pre-set parameters. These parameters set by User dictate the operation of the Spot DCA bot. Any parameter selection and investment decision will, in all cases, be made solely by User.
Binance does not determine the suitability of the Spot DCA bot or any Spot DCA bot parameter and makes no representation or warranty that the Spot DCA will be profitable. Any default parameter settings are not recommendations for the relevant parameter and are provided for convenience only. Any risk associated with the Spot DCA bot resides with User, not Binance.
When deciding to use Spot DCA and setting relevant parameters, User should consider that it is not guaranteed that the price of the relevant asset will reach the “exit signal” (i.e. the price that will trigger the execution of the take-profit order) within a particular time frame or at all. User must be comfortable with the risk that they could be entering a position that permanently remains loss-making (including total loss) or only becomes profitable after an extended holding period.
Transactions entered into via Spot DCA may incur trading fees. User should consider the impact of trading fees on the performance of the relevant bot before deciding to use Spot DCA and setting any relevant parameters.
7. Trading Bots Account and Trading Bots Orders
Binance may create a separate account for orders submitted by User through the use of certain Trading Bots (each such account, a “Trading Bots Account”) in order to differentiate the resulting transactions from standard spot and futures transactions entered into by User through the Binance Platform other than through the use of such Trading Bots (which transactions will be recorded against User’s standard Spot or Futures Account (as applicable)). If a Trading Bots Account is set up for User, this will be set up automatically upon the entry by User into a Grid Trading Strategy or transaction (as applicable) pursuant to the use of the relevant Trading Bots, and details of such Trading Bots Account will be visible to User within the Binance Platform.
It is the responsibility of User to monitor each Trading Bots Account set up on its behalf and to ensure that sufficient Digital Assets are allocated to each Trading Bots Account to satisfy any payments due with respect to transactions recorded against such account (including, without limitation, payment of applicable fees and Margin Requirements with respect to the relevant transactions). User should monitor any Margin Calls and/or Liquidation notices sent by Binance with respect to its activity on the Binance Platform to ensure that User understands which Account such Margin Calls and/or Liquidation notices relate to. Unless otherwise permitted by Binance, Digital Assets allocated to a User’s standard Spot and/or Futures Account will not be applied to satisfy Margin Calls or other payments due with respect to transactions recorded against a Trading Bots Account.
8. Futures Funding Rate Arbitrage Bot
One of the Trading Bots Accounts that User may be provided with access to is the futures funding rate arbitrage bot (the “Arbitrage Bot”, and any trading strategy performed by Arbitrage Bots, as described in this paragraph, an “Arbitrage Bot Strategy” ), provided User is eligible for Futures Trading Services (as defined in the relevant Service Agreements). The Arbitrage Bot enables User to simultaneously place purchase and sell orders of mirrored transactions on both Spot Trading and Perpetual Futures markets, as described further in the sub-paragraphs titled Positive Carry and Reverse Carry below (the “Arbitrage Transactions”).
The Arbitrage Bot will apply 2x leverage by default on any Arbitrage Transaction that is a Futures Trading transaction in order to ensure trading fees associated with opening the Arbitrage Transactions can be settled. In order to open an Arbitrage Bot position, User will be required to deposit the full position size amount into the relevant Bot Account (the “Arbitrage Deposit Amount”) and User understands and agrees that such 2x leverage will not contribute towards increasing User’s buying power or position size. The Arbitrage Deposit Amount will be automatically taken from User’s Spot account once an Arbitrage Bot is initiated. Users may adjust the leverage level of the Perpetual Futures Contract which will in turn modify the Initial Margin required to open the position.
The Arbitrage Deposit Amount will be reduced by a percentage within the range of 5% - 10%, but at all times subject to Binance’s sole and absolute discretion taking into account market conditions and internal policy, before it is applied by the Arbitrage Bot to enter into the applicable Arbitrage Transactions (such reduced Arbitrage Deposit Amount, the “Investment Amount”). This reduction is reserved to prevent slippage during contract initiation, and possible expenses associated with Funding Fees.
Positive Carry
At any time when the accumulated funding rate over the latest 72-hour period (displayed as “3D Funding%”) is positive, User may direct the Arbitrage Bot to enter into a Positive Carry Arbitrage Transaction. A “Positive Carry Arbitrage Transaction” involves the Arbitrage Bot, upon receipt of the applicable Arbitrage Deposit Amount into the relevant Trading Bot Account, simultaneously (i) purchasing a Base Asset with the Investment Amount of the Quote Asset; and (ii) opening a 2x leveraged short position in a Perpetual Futures Contract that references the same quantity of Base Asset acquired under (i) in order to accumulate Funding Fees.
Half of the Base Asset that is purchased on the Spot Trading market, as described in (i) above, is used as Initial Margin to open the short position described in (ii) above. Any trading fees associated with the Positive Carry Arbitrage Transaction will be deducted from the other half of the purchased Base Asset in the Arbitrage Bot account. Users may adjust the leverage level of the Perpetual Futures Contract which will in turn modify the Initial Margin required to open the position.
Reverse Carry
At any time when the accumulated funding rate over the latest 72-hour period (displayed as “3D Funding%”) is negative, User may direct the Arbitrage Bot to enter into a Reverse Carry Arbitrage Transaction. A “Reverse Carry Arbitrage Transaction” involves the Arbitrage Bot, upon receipt of the applicable Arbitrage Deposit Amount into the relevant Trading Bot Account, simultaneously (i) selling the Investment Amount of the Base Asset to acquire the Quote Asset; and (ii) opening a 2x leveraged long position in a Perpetual Futures Contract that references the same quantity of Quote Asset acquired under (i) in order to accumulate Funding Fees.
Half of the Quote Asset that is purchased on the Spot Trading market, as described in (i) above, is used as Initial Margin to open the long position described in (ii) above. Any trading fees associated with the Reverse Carry Arbitrage Transaction will be deducted from the other half of the purchased Quote Asset in the Arbitrage Bot Account. Users may adjust the leverage level of the Perpetual Futures Contract which will in turn modify the Initial Margin required to open the position.
During extraordinary or extreme market conditions, Binance may, but is under no obligation to, notify User that it may consider terminating one or more of User’s Arbitrage Bot Strategies. User acknowledges and agrees that it will not rely solely on such notices and will independently monitor market conditions and the performance of any Arbitrage Bot Strategies.
Once an Arbitrage Bot Strategy is activated, it will continue to operate until User elects to terminate it or upon liquidation. User may only maintain a maximum of 10 Arbitrage Bot Strategies at any given time.
User acknowledges and agrees that the creation and termination of any and all Arbitrage Bot Strategies are solely under User’s responsibility and discretion. User is fully accountable for assessing, monitoring, and understanding the fluctuations and movements of the cumulative funding rate, market conditions (which could potentially cause divergence between futures price and underlying asset price on the spot market), and any potential risks associated with the operation of the Arbitrage Bot. No information provided by Binance shall be construed as advice in relation to Arbitrage Bot Strategies. By using the Arbitrage Bot, User acknowledges that Binance holds no responsibility for any outcomes that may arise from User’s trading decisions.
User acknowledges and agrees that each order created or closed by User with respect to User’s Arbitrage Bot Account shall be deemed valid and binding, notwithstanding that the opening or closing of such position may have exceeded any credit and other limits applicable to such User or in respect of User’s dealings with Binance, and regardless of it being opened or closed as a result of any inaccuracy or mistake by User.
Transactions entered into via an Arbitrage Bot may incur trading fees. Users should consider the impact of trading fees on the performance of the relevant strategy before deciding to use an Arbitrage Bot.
9. Digital Asset Risks
Digital Asset prices are subject to high market risk and price volatility. Prices can fluctuate significantly on any given day. Due to these price fluctuations, your holdings may significantly increase or decrease in value at any given moment and you may not get back the amount you originally invested.
Therefore, User should not trade or invest money they cannot afford to lose. It is crucial that User fully understands the risks involved before deciding to utilize any Trading Bots in light of their own financial resources, level of experience, and risk appetite. If required, User should seek advice from an independent financial advisor. The actual returns and losses experienced will vary depending on many factors, including, but not limited to, market behavior, market movement, and trade size. Past performance is not a guide to future performance. The value of your investments may go up or down. Binance does not provide financial or investment advice. For more information, see Binance Terms of Use and Risk Warning.
