Binance will implement collateral rate adjustments for 12 margin trading assets across two scheduled phases this August, significantly altering borrowing limits and liquidation risks for leveraged positions. The changes include selective increases of up to 40% and reductions as high as 15% on different asset groups.
The first phase takes effect August 5, raising collateral rates by 10% to 40% for six cryptocurrencies including VIRTUAL, HYPER and BERA. Higher collateral rates decrease borrowing capacity against these assets, necessitating higher collateral coverage to prevent liquidations.
A second adjustment follows on August 8, reducing rates by 5% to 15% for another six assets including DOT, OP and ENS. Lower rates expand borrowing power for these tokens while decreasing liquidation vulnerability.
Binance strategically staggered these updates to provide users transition time for portfolio adjustments. Traders are urged to monitor leveraged positions and margin requirements closely through both phases, particularly noting fluctuations in the universal Margin Maintenance Ratio (uniMMR) during implementation windows.