Binance Futures to Introduce FDUSD Margin, Phase Out USDP

Binance Futures is set to support FDUSD as a margin asset, replacing USDP in Multi-Assets mode, improving the flexibility of the platform for users.

Binance, the world’s leading cryptocurrency exchange by trading volume and users, has announced significant updates to its futures trading platform. Starting March 8, 2024, at 09:00 (UTC), Binance Futures will start supporting 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 margin trading options. Users holding USDP will need to be careful as Binance has set transfer limits for USDP to zero in preparation for the transition. After March 14, 2024, 06:00 (UTC), all remaining USDⓈ-M futures balances of users will be automatically converted to USDT at a 1:1 ratio within approximately 24 hours.

Binance advised users to avoid adding new USDP futures positions during the conversion period to avoid potential losses. They have specified that they will not be liable for any losses incurred during this period due to the conversion process.

Introducing FDUSD as a margin asset will follow specific guidelines. Maximum inbound transfer limits for FDUSD will be determined by users’ VIP levels, and Binance has set discount rates for FDUSD in 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 enhances the utility of the platform and ensures that it remains in line with the evolving needs and preferences of the trading community.

However, Binance also cautioned that it reserves the right to change maximum transfer limits and discount rates depending on market conditions, highlighting the dynamic nature of the cryptocurrency market.

As with all trading solutions, Binance urges users to exercise responsible trading practices. The volatility of digital assets can lead to significant gains or losses and it is critical for users to make informed decisions based on their risk tolerance and investment goals.

The Binance team reaffirmed its commitment to supporting its users through this transition and encouraged users to consult the Multi-Asset Mode FAQ and How Multi-Asset Mode Auto Exchange Works for further information.

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