Binance Futures to Introduce FDUSD Margin, Phase Out USDP
Luisa Crawford Mar 04, 2024 07:52
Binance Futures is set to support FDUSD as a margin asset, replacing USDP in Multi-Assets Mode, enhancing the platform's flexibility for users.
Binance, the world's leading cryptocurrency exchange by trading volume and users, has announced significant updates to its futures trading platform. Starting from March 8, 2024, at 09:00 (UTC), Binance Futures will begin supporting FDUSD as a margin asset in Multi-Assets Mode, while simultaneously phasing out support for USDP.
This strategic move aims to streamline the futures platform's operations and provide users with more robust options for margin trading. Users holding USDP will need to be attentive as Binance has set the transfer-in limits for USDP to zero in preparation for the transition. After March 14, 2024, 06:00 (UTC), any remaining USDP balances in users' USDⓈ-M Futures wallets will be automatically converted to USDT at a 1:1 ratio within approximately 24 hours.
Binance has advised users to avoid adding new futures positions with USDP during the conversion period to prevent potential losses. They have clarified that they will not be responsible for any losses incurred during this period due to the conversion process.
The introduction of FDUSD as a margin asset will follow specific guidelines. The maximum transfer-in limits for FDUSD will be determined by users’ VIP levels, and Binance has set the haircut rates for FDUSD in an Auto-Exchange at 1%. The platform will calculate FDUSD margin balances in real-time according to the FDUSD price index.
This development reflects Binance's commitment to providing a flexible and efficient trading environment. By enabling FDUSD margin trading, Binance Futures is enhancing the platform's utility and ensuring that it remains aligned with the evolving needs and preferences of the trading community.
However, Binance has also cautioned that it reserves the right to amend maximum transfer-in limits and haircut rates depending on market conditions, underscoring the dynamic nature of the cryptocurrency market.
As with all trading decisions, Binance urges users to exercise responsible trading practices. The volatility of digital assets can result in significant profit or loss, and it's crucial for users to make informed decisions based on their risk tolerance and investment objectives.
The Binance team has reiterated its dedication to supporting its users through this transition and has encouraged users to consult the Multi-Assets Mode FAQ and How Does Auto-Exchange Work in Multi-Assets Mode for additional information.
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