Binance has announced that it will end support for certain leveraged tokens associated with Bitcoin, Ether, and BNB, effective April 3.

Unveiled on February 19, the decision specifically targets leveraged tokens #BTCUP , #BTCDOWN , #ETHUP , #ETHDOWN , #BNBUP and #BNBDOWN, all associated with Tether.

The exchange will stop trading and subscription services for these leveraged token pairs on February 28 at 06:00 UTC, as reported by Binance.

All trade orders for the leveraged tokens they mentioned will be “automatically deleted” on the set date, indicating a firm deadline for users to adjust their holdings.

In preparation for the delisting, Binance outlined a phased process starting April 1 and ending April 3.

“Users will be able to redeem their tokens before the delisting date,” the company said.

However, for those who miss the redemption deadline, Binance has pledged to convert the tokens into USDT based on their value on the delisting date and credit users' accounts within 24 hours.

As Binance describes it, leveraged tokens provide a way to take leveraged positions without collateral or maintenance margin, avoiding liquidation risks.

“The effects of price movements on the perpetual contract market, premiums and funding rates” are among the potential risks that Binance has warned about despite the benefits of leveraged tokens.

$BTC $ETH $BNB