Binance has announced changes to collateral ratios for over 10 digital assets that will affect trading on its platform. These changes will be implemented in two phases.
Changes on August 5
The first phase of adjustments will take place on August 5, 2025, at 06:00 UTC. On that day, collateral ratios for several digital assets will be increased:
* VIRTUAL: from 30% to 50%. * HYPER: from 10% to 30%. * BERA: from 10% to 30%. * HEI: from 10% to 30%. * BABY: from 10% to 30%. * INIT: from 10% to 30%.
Changes on August 8
The second phase of adjustments will occur on August 8, 2025, three days after the first. On this day, collateral ratios for the following assets will be decreased:
* DOT: from 80% to 75%. * OP: from 65% to 55%. * ENS: from 60% to 50%. * CHZ: from 50% to 40%. * HOT: from 50% to 35%. * LRC: from 40% to 25%.
What is a Collateral Ratio?
In the context of Binance Margins, a collateral ratio describes the loan-to-collateral ratio attached to a digital asset. It represents the ratio of the value of borrowed assets to the value of collateral assets used to secure a loan. A higher collateral ratio indicates a lower risk of financial loss for Binance in the event of a trader's default.
The adjustments to collateral ratios may affect the financial risk level for traders. Binance advises users to monitor changes closely to avoid potential losses.
