Announcement summary



  • Effective time: from 2025-12-04 00:00 (UTC).


  • Affected assets: The collateral ratios of the following various assets will be adjusted: ARB (Arbitrum), ARK, AXS (Axie Infinity), BCH (Bitcoin Cash), CFX (Conflux), DAI, ETC (Ethereum Classic), FDUSD, GALA, ID (Space ID), MANA (Decentraland), MASK, OP (Optimism), SAND (The Sandbox), SHIB, TUSD.


  • Risk reminder: These changes may affect your VIP Loan's LTV (Loan-to-Value). Binance advises users to closely monitor their LTV to avoid potential liquidation or losses due to ratio adjustments.


  • Disclaimer: Binance does not assume responsibility if users fail to timely adjust their collateral or loan amounts and suffer losses.


  • Inquiry method: Users can check the latest collateral ratios on the 'Loan Data' page of VIP Loan.


  • Contact: If you have more questions, you can contact the Binance VIP Key Account Coverage team (email: vip_loan@binance.com).



Analysis and Recommendations




  2. Why does Binance adjust?



    • The collateral ratio is a way for Binance to measure asset risk. Adjusting the ratio is meant to control risk when market volatility or asset risk assessments change.


    • Increasing the ratio → This means that the asset's risk is lowered for Binance, allowing for more loans to be taken on.


    • Decreasing the ratio → This means that the risk is increased, and the equivalent value of the user's collateral may decrease in terms of borrowing capacity.



  4. Your impact:



    • If you have a VIP Loan and use any of the above assets as collateral, your LTV could potentially increase or decrease.


    • LTV increases: If the collateral asset ratio decreases, you will need more additional assets to maintain the same loan amount. Otherwise, there is a risk of liquidation.


    • LTV decreases: If the ratio increases, you may be able to borrow more (or have a safer margin), but this also depends on other conditions (interest rates, margin requirements, risk appetite).



  6. Recommended actions:



    • Check your VIP borrowing: Log in to the Binance VIP Loan page to see which collateral assets you are currently using and what your LTV is.


    • Simulate adjustments: If the ratio changes, you can simulate the impact of adding or removing collateral assets on your LTV.


    • Prepare additional collateral: If you are concerned about increased risk with your LTV, consider preparing extra assets as a backup collateral.


    • Contact customer service: If you have any questions or have a large VIP borrowing plan (institutional, large funds, etc.), you can contact the Binance VIP team or a dedicated manager.

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