Binance launched the Binance CoinMarketCap (CMC) Top 10 Equal-Weighted Index for users to better monitor and evaluate the performance of the crypto market. Whilst you cannot purchase the index, you can purchase the cryptocurrencies that make up this index. Binance offers a way to do this via the Auto-Invest Index-Linked Plan.
What is the Auto-Invest Index-Linked Plan?
The Auto-Invest Index-Linked Plan allows you to automate the purchase of cryptocurrencies that make up the Binance CoinMarketCap (CMC) Top 10 Equal-Weighted Index. You can buy the tokens in the same proportion as the Index on a periodic basis, and the monthly portfolio rebalancing offers you a way to continue to hold cryptocurrency in the same proportion as the Index as it changes over time.
What is in the Index-Linked Plan and the filtering criteria?
The cryptocurrencies that make up the index are dependent on the filtering criteria of the index constituents of the Binance CoinMarketCap (CMC) Top 10 Equal-Weighted Index:
- Have been listed on the Binance Exchange and CoinMarketCap for at least 30 days;
- Are not wrapped or pegged to another digital asset, non-digital (fiat) currencies, a group of those currencies, or physical assets;
- Are not algorithmic stablecoins;
- Does not include CoinMarketCap Top Memes Tokens by Market Capitalization.
Which stablecoins, fiat currencies and cryptocurrencies are supported as payment options on Auto-Invest?
Currently, Auto-Invest supports 20+ stablecoins, fiat currencies and cryptocurrencies as payment options. You can view a full list of the supported assets from [Earn] - [Auto-Invest].
How does the Auto-Invest Index-Linked Plan differ from the Auto-Invest Portfolio Plan?
The Portfolio Plan and the Index-Linked Plan both enable you to buy up to 10 assets in each recurring cycle, but the Index-Linked Plan takes this to the next level. Every month, your cryptocurrency holdings will rebalance to reflect the Index.
What is rebalancing?
As the cryptocurrency market is ever-changing, the value of each asset may change drastically over time. Through regular rebalancing, the system will automatically buy and sell portions of your cryptocurrency holdings to bring each asset's weight to an allocation that matches the Index.
When does rebalancing happen?
Both One-Time and Recurring purchases of the index-linked plans will go through monthly rebalancing.
On the fourth Monday of every month at 00:00 (UTC), the data provided by the index’s data provider at that time will be used for rebalancing. On the Friday of the same week, the rebalancing of the Auto-Invest Index-Linked Plan will start at any time within the day and will finish after approximately 3-6 hours. You cannot view, edit, redeem, or remove the plan during the rebalancing period. Once completed, you will be able to view the revised plan details from [My Plan] - [View Details].
Please note that after rebalancing, the list of assets may differ compared to before rebalancing.
Any Auto-Invest Index-Linked Plan transactions scheduled during the rebalancing period will be skipped. The plan will resume normally after the rebalancing is completed.
What is the difference between the One-Time and the Recurring Index-Linked Plan?
- One-time purchase: Subscribe to an index-linked plan once.
- Recurring purchase: Subscribe to an index-linked plan on a daily, weekly, bi-weekly, or monthly basis.
Both purchases give you constant exposure to the top 10 market cap coins in the same proportion as the Binance CoinMarketCap (CMC) Top 10 Equal-Weighted Index with monthly rebalancing.
How to create a One-Time Auto-Invest Index-Linked Plan?
Currently, the Auto-Invest Index-Linked Plan is only available on the Binance App.
1. Go to [Subscribe] and tap [Index-Linked]. Tap [Subscribe] to start.
2. Select [One-Time Purchase]
3. You will see the Top 10 Equal-Weighted Index stats and constituents. Tap [One-Time].
4. Enter the subscription [Amount] in stablecoins, fiat currencies or cryptocurrencies of your choice (Please refer to Which stablecoins, fiat currencies and cryptocurrencies are supported as payment options on Auto-Invest?)
You can also choose to enable [Use Flexible Balance]. Once enabled, if your Spot Wallet balance is insufficient, the system will automatically redeem the assets from your balance in Simple Earn Flexible Products to complete the purchase. Tap [Confirm].
5. Read the notes and check the box next to each to confirm. Tap [Confirm] to create the plan.
6. Your One-Time Auto-Invest Index-Linked Plan will be processed instantly.
How to create a recurring Auto-Invest Index-Linked Plan?
Currently, the Auto-Invest Index-Linked Plan is only available on the Binance App.
1. Go to [Subscribe] and tap [Index-Linked]. Tap [Subscribe] to start.
2. Select [Recurring Purchase].
3. You will see the Top 10 Equal-Weighted Index stats and constituents. Tap [Recurring].
4. The system will display the top 10 digital assets the Index is tracking. Enter the subscription amount and your desired payment mode (Please refer to Which stablecoins, fiat currencies and cryptocurrencies are supported as payment options on Auto-Invest?). Then, select the recurring cycle and a specific time for the purchase.
You can also choose to enable [Use Flexible Balance]. Once enabled, if your Spot Wallet balance is insufficient, the system will automatically redeem the assets from your balance in Simple Earn Flexible Products to complete the purchase. Tap [Confirm].
5. Read the notes and check the box next to each to confirm. Tap [Confirm] to create the plan.
6. Your Auto-Invest Index-Linked Plan has been scheduled and will start on the selected date and time.
How to edit, redeem, or remove my Auto-Invest Index-Linked Plan?
Please note that you cannot view, edit, redeem, or remove a plan during the rebalancing period.
Go to [My Plan] and tap [Index-Linked]. Here you can view all your ongoing plans, including your one-time and recurring purchases. To manage a plan, tap [View Details].
Note: Any recurring purchases of the Auto-Invest Index-Linked Plans scheduled during the rebalancing period will be skipped. The plan will resume after rebalancing is completed. Please note that you cannot subscribe to new one-time purchases of the Auto-Invest Index-Linked Plans during rebalancing, but your existing and already processed one-time purchases will go through monthly rebalancing.
Redeem Assets
You can redeem a portion or the total amount of the purchased assets from your Recurring or One-Time Index-Linked plans anytime, except when the plan is being rebalanced.
Note: This step is only for users who want to redeem their purchased cryptocurrencies from their One-Time or Recurring Index-Linked Plan to their Spot Wallets. Please note that redeeming your Index-Linked Plan assets to your Spot Wallet will remove your constant and dynamic exposure to the monthly rebalancing. Please also note that you need to redeem all tokens on the plan with an equal percentage. For example, you can redeem 20% of the 10 tokens you purchased from the plan, but you cannot only redeem 20% of a single token.
1. Go to [My Plan] - [Index-Linked]. Tap [View Details] next to the plan you wish to redeem.
2. To redeem your purchased assets, tap [Redeem]. Enter the redemption percentage and tap [Confirm]. Your redeemed assets will be distributed to your Spot Wallet within a few minutes.
Note on redemption:
- Redeeming your Index-Linked Plan assets to your Spot Wallet will remove your constant and dynamic exposure to the monthly rebalancing.
- You can redeem a portion or the total amount of the purchased assets from your Recurring or One-Time Index-Linked plans anytime, except when the plan is being rebalanced.
- Please note that you need to redeem all tokens on the plan with an equal percentage. For example, you can redeem 20% of the 10 tokens you purchased from the plan, but you cannot redeem 20% of a single token only.
Remove the Plan
To remove a plan, you need to redeem all the purchased assets first. After that, you will see the [Remove Plan] button. Then tap [Remove the plan] to confirm.
How to view my Auto-Invest Index-Linked Plan history?
To view your plan records, tap [History] at the bottom of the screen. Here you can view your subscription, redemption, and rebalancing records.
You may tap [Filter] to search for a specific plan’s record.
At what price will the transactions of my Index-Linked Plans be executed? What fees will I be charged for cryptocurrency purchases via Index-Linked Plans?
For more information on cryptocurrency prices on Auto-Invest, as well as the fee charges on the Auto-Invest platform, please refer to the general Auto-Invest FAQ.
When will my Index-Linked plan transactions be processed?
One-time purchases: All One-Time Index-Linked plan transactions are processed in real-time.
Recurring purchases: All Recurring Index-Linked plan transactions are processed at your selected time and date. However, depending on dynamic factors, such as the number of transactions to be processed, your transactions will be processed in a timely manner.
Disclaimer: Binance will make reasonable efforts to ensure that transactions on the Platform are processed in a timely manner, but Binance makes no representations or warranties regarding the amount of time needed to complete processing, which is dependent upon many factors outside of our control. Please read the Terms of Use for more information.
When does rebalancing happen?
Both One-Time and Recurring purchases of Index-Linked plans will go through monthly rebalancing.
On the fourth Monday of every month at 00:00 (UTC), the data provided by the index’s data provider at that time will be used for rebalancing. On the Friday of the same week, the rebalancing of the Auto-Invest Index-Linked Plan will start at any time within the day and finish after approximately 3-6 hours. Please note that you cannot view, edit, redeem, or remove the plan during the rebalancing period. You will be able to view the revised plan details from [My Plan] - [View Details] once rebalancing completes.
Please note that after rebalancing, the list of assets may differ compared to before rebalancing.
Any Auto-Invest Index-Linked Plan transactions scheduled during the rebalancing period will be skipped. The plan will resume after rebalancing is completed.
Will I be charged a rebalancing fee?
You will be charged a rebalancing fee when your Index-Linked Plan rebalances to match, as near as possible, the composition of a Binance Index (e.g., the Top 10 Equal-Weighted Index).
Disclaimer: Binance may change these fees from time to time, and will communicate these changes by updating the rebalancing summary and history under [History] - [Rebalancing].
How do I stop rebalancing?
You cannot stop rebalancing. The portfolio will regularly rebalance as long as you have the available assets in your Recurring or One-Time Index-Linked plans.
Please note that even if you pause the plan, the rebalancing will still happen every month.
Where are my Index-Linked Plan assets?
Crypto purchased through the Index-Linked Plan will be retained within your Auto-Invest account, and will not be deposited into your Simple Earn Flexible account. To check your purchased assets, go to [Index-Linked] - [View Details].
Please note that unlike Auto-Invest assets purchased through the Single Token and Portfolio modes, assets purchased through Index-Linked plans do not accrue Simple Earn rewards in accordance with the Simple Earn Terms of Service.
Why can’t I edit, redeem, or remove my Index-Linked Plans on the Binance website?
Currently, the Index-Linked Plan is only available on the Binance app. Please use the Binance App to edit, redeem, and remove your plans. Once the website version is released, you will be able to edit, redeem, and remove your Index-Linked plans on the Binance website.