Binance Futures recently announced to cease support for its Cross Collateral feature on September 30, 2022. The development will result in Binance Futures not accepting EUR, ETH, and BTC assets as Cross Collateral.
The imposition will be effective from September 1; however, it will not affect any existing positions. In the official post by Binance, the platform specified several important points to users.
It suggested everyone close all EUR, BTC, and ETH Cross Collateral positions before September 30. At the same time, users are suggested to return the borrowed USDT to the platform.
The Binance system will automatically close these positions if users fail to close them manually before the specified time. All of the borrowed USDT will be returned in three days by deducting users’ available balance in Futures Wallets. Moreover, users will also receive their collateral assets back to the Spot Wallets.
Besides, the platform has warned users about possible liquidation because of insufficient margin. It can require users to adjust their futures positions to avoid potential liquidation.
There will be no liquidation fee charged during the automated settlement procedure. However, the Binance system may sell more assets than required to ensure the Cross Collateral loans are closed.
Users can still use the collaterals to trade Futures during the period using the Multi-Assets Mode. It can be activated by following the given steps:
- Start by reaching the Futures trading page
- Click on Settings and then Preference
- Find the Asset Mode option and click on it
- Now, select the Multi-Assets Mode option
Binance has been modifying its collateral policies for quite a while now, and the latest announcement can be perceived as an attempt to stabilize its operations. Given the history of Binance updates, the closing of Cross Collateral is expected to be wrapped up smoothly.