Binance Futures Introduces FDUSD as Margin Asset

Binance Futures, the world’s leading cryptocurrency exchange, has announced a significant update 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, replacing USDP.

Enhancing Platform Flexibility

This strategic move aims to enhance the platform’s flexibility for users engaging in margin trading. By introducing FDUSD as a margin asset, Binance is providing users with more robust options for their trading activities.

Users holding USDP should be aware that 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.

Guidelines for FDUSD Trading

When using FDUSD as a margin asset, users’ maximum transfer-in limits will be determined by their VIP levels. Binance has also 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.

Responsible Trading Practices

Binance has advised users to avoid adding new futures positions with USDP during the conversion period to prevent potential losses. They have also emphasized the importance of responsible trading practices, as the volatility of digital assets can result in significant profit or loss.

As with all trading decisions, users are encouraged to make informed decisions based on their risk tolerance and investment objectives. Binance reminds users that they will not be responsible for any losses incurred during the conversion process.

Supporting Users Through the Transition

Binance has reiterated its commitment to supporting its users through this transition. The platform encourages users to consult the Multi-Assets Mode FAQ and How Does Auto-Exchange Work in Multi-Assets Mode for additional information on the changes.

By introducing FDUSD as a margin asset and phasing out USDP, Binance Futures is enhancing its utility and ensuring that it remains aligned with the evolving needs and preferences of the trading community. However, Binance reserves the right to amend maximum transfer-in limits and haircut rates depending on market conditions, highlighting the dynamic nature of the cryptocurrency market.