How are the Reward Rates for BFUSD Holders determined?

Disclaimer: In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.

Binance Futures users who hold BFUSD in their Futures Account will be entitled to receive daily rewards in USD stablecoin at the daily Base Rate. Futures users can qualify to receive rewards at a higher Boosted Rate instead for each day that they actively trade USDⓈ-M Futures on their Futures Account.

BFUSD holders will either receive the Base Rate or Boosted Rate depending on the holder’s qualifying USDⓈ-M trading activity on their account.

• Base Rate: If you do not have qualifying USDⓈ-M trading activity on any given day, you will receive the Reward Amount (if any) based on the Base Rate for that day.
• Boosted Rate: Users who have made qualifying trading USDⓈ-M activity that day will receive a Reward Amount (if any) based on the Boosted Rate for that day

The Base Rate and the Boosted Rate for each Calculation Day will be determined by Binance on the following day, in its sole discretion, which will be published here.

Binance uses its proceeds from the sale of BFUSD to generate passive income by delta hedging crypto assets held in the BFUSD Collateral Pool between spot and futures markets, as well as staking assets. Binance uses that passive income to fund a reward for the holders of BFUSD with qualifying balances, at their Applicable Reward Rate.

Note:

• Each of the Base Rate and the Boosted Rate are subject to a minimum of zero.
• The Boosted Rate will be higher than the Base Rate (unless both rates are zero).
• You can also check historical Base Rates and Boosted Rates here. Past performance is not indicative of future performance.
• Binance’s ability to generate passive income from the BFUSD Collateral Pool and BFUSD Hedging Portfolio will be a key factor in Binance’s determination of the Base Rate and Boosted Rate for any day.
• The Base Rate and Boosted Rate for any day may be zero, but never less than zero.

Binance will also maintain a BFUSD Reserve Fund to protect its investment and hedging strategy from sustained Funding Fee costs, contributing to the stability and reliability of BFUSD.

How to determine the Base Rate and Boosted Rate?

In determining each of the Base Rate and Boosted Rate for a Calculation Day, Binance will take into account a number of factors, including, without limitation:

• The aggregate amount of Qualifying Balances across all holders of BFUSD on that Calculation Day;
• The distribution of aggregate Qualifying Balances between Qualifying Trading Accounts and non-Qualifying Trading Accounts across all holders of BFUSD on that Calculation Day;
• The level of BFUSD Income in respect of that Calculation Day;
• The funding requirements in respect of the BFUSD Reserve Fund.

The Reward Amount for each Calculation Day (CD) will be calculated as follows:

The Qualifying Balance for each Calculation Day will be an amount determined by the Platform equal to the lowest balance of BFUSD in the relevant account during that Calculation Day, measuring the BFUSD balance throughout the UTC day (at such intervals selected by Binance in its sole discretion).

The Reward Amount for a Calculation Day will be calculated by Binance and distributed in USD stablecoin to the UM futures wallet on the following day. When Funding Fees result in a cost for Binance, the Base Rate and/or Boosted Rate may be zero (but not less than zero), in which case there will be no Reward Amount paid. Binance will use the BFUSD Reserve Fund to cover Funding Fee costs.

How to check my BFUSD reward?

Website

Login to your Binance Account and go to [Futures] - [BFUSD Reward], you will find the reward history on the top right.

APP

Go to [Futures], tap [...] and select [BFUSD] to find the reward history below.