Binance Futures will support FDUSD as a margin asset, replacing USDP in multi-asset mode, improving the platform’s flexibility for users.
Binance, the world’s leading cryptocurrency exchange in terms of trading volume and users, has announced significant updates to its futures trading platform. Starting March 8, 2024 at 09:00 (UTC), Binance Futures will support FDUSD as a margin asset in multi-asset mode while phasing out support for USDP.
This strategic move aims to streamline the operations of the futures platform and provide users with more robust options for margin trading. Users holding USDP need to be cautious as Binance has set the transfer limit for USDP to 0 in preparation for the conversion. Any USDP balance remaining in a user’s USDⓈ-M futures wallet after 06:00 (UTC) on March 14, 2024 will be automatically converted to USDT at a 1:1 ratio within approximately 24 hours.
Binance advised users not to add new futures positions with USDP during the transition period to avoid potential losses. We have made it clear that we will not be liable for any losses incurred during this period due to the transition process.
Introducing FDUSD as a margin asset follows certain guidelines. The maximum transfer limit for FDUSD is determined by the user’s VIP level, and Binance has set the interest rate for FDUSD at 1% on automated exchanges. The platform calculates FDUSD margin balance in real time according to the FDUSD price index.
These developments reflect Binance’s commitment to providing a flexible and efficient trading environment. By enabling FDUSD margin trading, Binance Futures strengthens the usability of the platform and ensures it remains responsive to the evolving needs and preferences of the trading community.
However, Binance also warned that it reserves the right to modify maximum transfer limits and haircut rates depending on market conditions, highlighting the dynamic nature of the cryptocurrency market.
As with all trading decisions, Binance urges users to practice responsible trading practices. The volatility of digital assets can result in significant profits or losses, and it is important for users to make informed decisions based on their risk tolerance and investment objectives.
The Binance team reiterated its efforts to support users through this transition and encouraged users to refer to the Multi-Asset Mode FAQ and How Automated Exchanges Work in Multi-Asset Mode for additional information.
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