Warning for Futures Users on Binance

Binance uses hedging strategies, such as taking LONG positions in Spot and SHORT in Futures, to stabilize the value of its stablecoin, like BFUSD. For example, if Binance buys 1 ETH at $3,000 in Spot (LONG) and opens an equivalent SHORT in Futures, it locks in the value of ETH at $3,000 to back the stablecoin regardless of whether the price goes up or down. However, these hedges do not protect users: if you have a leveraged LONG position in Futures and the price drops, you could be liquidated. Trade cautiously, use lower leverage, and maintain sufficient margin.