$AXS Binance Latest Update: Changes to Collateral Ratios for Margin Assets in Portfolio
Binance announced that on May 16, 2025, it will change the collateral ratios for several cryptocurrencies under its portfolio margin system. These changes may affect trading strategies and market trends.
Affected assets and new collateral ratios:
• $CAKE: from 80% to 75%
• $IOTA: from 70% to 60%
• $AXS : from 70% to 60%
• MASK: from 60% to 50%
• CHZ: from 65% to 50%
Potential impacts on users:
1. Reduced available margin: If you use the above assets as collateral, your borrowing or leveraged trading capacity will decrease.
2. Increased liquidation risk: The margin required to maintain existing positions will increase, which may lead to liquidations.
3. Need for asset reallocation: Some users may need to increase their investment in stablecoins or high-collateral-ratio assets to maintain their original strategy.
4. Changes in market volatility: These assets may face selling pressure in the short term.
Overall, this news is negative for the above tokens for the following reasons:
1. Decreased collateral value → Reduced demand
When the collateral ratio of a token decreases, its practical value in portfolio margin also diminishes. Holders may:
• Reduce collateral or holdings of these assets;
• Shift to assets with higher collateral ratios and lower risk (such as USDT, BTC, ETH).
This will reduce demand for these tokens, thereby exerting downward pressure on prices.
2. Increased liquidation risk → Passive selling pressure
For high-leverage accounts, such adjustments may lead to:
• Insufficient margin;
• Passive reduction of positions or liquidation of some holdings.
This may also increase short-term selling pressure, especially if many accounts concentrate on using these tokens as collateral.
3. Market sentiment perspective
Such adjustments send a signal: Binance believes that the collateral risk of these tokens has increased, which in itself is a form of "risk control warning" for the market and may trigger cautious sentiment.
