Binance to Cut Portfolio Margin Collateral Ratios for 10 Assets Starting April 11
Key Takeaways:
- Some altcoins in Binance’s list of Portfolio Margin will have lower collateral ratios.
- Collateral cuts range from 10% to 25%, reducing the buying power of margin traders.
- Users have to carefully monitor their uniMMR to prevent the possibility of liquidation.
Binance Modifies its Portfolio Margin Trading Rules, Reducing Risk Exposure
Binance will implement a major change to its Portfolio Margin system on April 11, 2025 at 06:00 UTC, reducing collateral ratios for ten crypto assets. The upgrade should be completed in about an hour, and users who have these assets as collateral will need to adjust their risk management strategies. Binance is tightening margin rules on volatile or low-liquidity altcoins to reduce systemic risk, as part of its broader risk management strategy.
Collateral Cuts: Which Coins Are Hit and How
The most drastic are seen with the smaller-cap altcoins, many of which tend to be utilized by higher-risk traders operating using the Portfolio Margin system. Here are the updated collateral ratios:
| Asset | Collateral Ratio (Before) | Collateral Ratio (After) |
| ICP | 80% | 70% |
| SNX | 80% | 65% |
| MANA | 75% | 65% |
| KAVA | 70% | 60% |
| KNC | 70% | 55% |
| CHR | 70% | 55% |
| TLM | 60% | 50% |
| ALICE | 65% | 50% |
| BETA | 60% | 45% |
| SFP | 50% | 40% |
The biggest fall comes for SFP (SafePal) – from 50% to merely 40%. Meanwhile, ICP (Internet Computer) remains fairly high in collateral power, only reduced by 10%.
To put it simply, it means that users can borrow less value on these assets. Such cuts are particularly significant for day traders and those who operate at the edge of their available margin, as even minor shifts in collateral can force rapid liquidation. Previously, $1,000 of SNX could serve as $800 of collateral; under the change, only $650 will count — reducing margin leverage, which could lead to forced liquidation if traders fail to rebalance in time.
But the Reality of uniMMR Matters Now More Than Ever for Margin Traders
Collateral Ratios also have a direct correlation with the Unified Maintenance Margin Ratio (uniMMR) — a critical value for determining whether or not an account remains above the liquidation threshold.
Traders with tight margins or employing a number of altcoins as collateral will need to deposit more funds or reduce positions in order to keep a healthy uniMMR. But since Binance has not enabled any auto-adjustments, all shortfalls will have to be accounted for manually by the users.
A user holding KNC and CHR as collateral now sees both assets reduced from 70% to 55%, significantly cutting down their total margin value. That’s a big drop in total margin value, which could result in unexpected liquidations if the Unified Maintenance Margin Ratio (uniMMR) drops below the level required by the platform. Binance users who rely heavily on altcoins for collateral must now evaluate whether the added risk aligns with their trading strategy.
A Cautious Binance Approach to Low Liquidity Assets
Although Binance has yet to issue an official explanation as to why it selected the ten assets it did, industry observers say the liquidity profile and the volatility risk of these tokens were integral to the selection process. The vast majority of the impacted assets with daily trading volumes as low as 40 TLM (Alien Worlds) or BETA Finance can have extreme price movements, particularly in market stress.
The tighter collateral ratios may push high-leverage users to reduce exposure or switch to more stable assets like ETH or BTC, reflecting a broader industry shift amid rising regulatory pressure and market volatility.
Prepare Accordingly to Avoid Liquidation
With the upgrade going live on April 11, traders are running out of time to re-balance their portfolios. Those who don’t adapt risk getting hit by Binance’s liquidation bot, which will automatically sell assets to restore uniMMR compliance.
The latest update from Binance drives home an increasingly familiar story in crypto: greater caution, less risk taking. With altcoins now subject to wild swings in price and utility, exchanges will seem far more hesitant to be more hesitant to offer generous margin perks to support these altcoins, despite their popularity. Customers relying upon Portfolio Margin now have to walk gingerly or be punished for it.
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