Binance Increases BFUSD Position Limits to Enhance Futures Trading Flexibility
Binance has announced an increase in the maximum position limits for its yield-based margin asset, BFUSD, on Binance Futures.
The upgrade, set to take effect on December 17, 2024, at 15:00 (UTC+8), aims to enhance trading capacity and flexibility for users across all VIP levels, from VIP 0 to VIP 9.
BFUSD, which can be used as a margin for USDT-M futures contracts, allows traders to earn daily USDT rewards.
Under the new limits, VIP 0 users will see their cap grow from 250,000 BFUSD to 400,000 BFUSD, while VIP 9 traders will experience an increase from 5,000,000 BFUSD to 8,000,000 BFUSD.
The update applies individually to both master and sub-accounts. However, Binance clarified that BFUSD cannot be purchased directly for virtual sub-accounts.
Instead, users can utilize the Binance API to transfer BFUSD from their master accounts.
Despite these improvements, buying or redeeming BFUSD via the API remains unsupported. Binance advises traders to monitor its Futures trading rules for real-time updates and changes.
Meanwhile, Binance has clarified that BFUSD, its new high-yield asset, is not a stablecoin and has yet to be officially launched.
The clarification follows a November 17 post by crypto news aggregator Zoomerfied on X, which mistakenly suggested that Binance would release a stablecoin offering a 19.55% annual yield.
The claim sparked comparisons to Terraform Labs’ failed algorithmic stablecoin, TerraClassicUSD (USTC), known for its similar high-yield promises.
In response to the confusion, Binance’s customer support emphasized that BFUSD is not a stablecoin but a reward-bearing margin product designed for futures trading.
Unlike traditional yield-bearing products, BFUSD allows traders to use it as collateral without locking or staking their funds.
Users can hold BFUSD in their UM Wallet and receive daily airdrops in their UM Futures Wallet, which are determined through periodic snapshots.