According to Binance's official announcement, starting from 2025-05-17 00:00 (UTC), Binance Portfolio Margin will introduce tiered negative balance thresholds for different assets based on users' VIP levels. This change will affect how interest fees are calculated for users with negative balances in their Portfolio Margin Accounts. If a user's negative balance exceeds the threshold, an interest fee will be charged daily at 00:00 (UTC), calculated using the Binance Margin Borrow Daily Interest Rate.
The interest fee formula is as follows: Interest Fee = abs(NegativeBalance) * dailyInterestRate. For example, a VIP 9 user with a negative balance of 10,050 USDT in their Portfolio Margin Accounts can hold up to a 10,000 USDT negative balance threshold. If the daily interest rate for USDT assets is 0.1%, the interest fee charged will be calculated as Interest Fee = abs(-50) * 0.1% = 0.05 USDT. NegativeBalance is determined by the formula: NegativeBalance = min(totalAssetBalanceAcrossPMAccounts + negative_threshold, 0).
Another example illustrates that if a VIP 9 user with a negative balance of 10,050 USDT deposits 2,000 USDT, reducing the negative balance to 8,050 USDT by 00:00 (UTC), no interest fee will be charged as the balance is below the threshold. Users should note that negative balances are permitted only when the Unified Maintenance Margin Ratio (uniMMR) is above the liquidation threshold of 105%. Interest fees will accrue to users' Portfolio Margin Accounts, impacting the uniMMR. Users are advised to monitor uniMMR closely to prevent potential liquidation or losses due to changes in the Portfolio Margin Account balance.
For those who have enabled the Auto Repay function, it is crucial to deposit sufficient assets into their Cross Margin Accounts at least two hours before the daily interest fee charging time at 00:00 (UTC). This ensures that the Auto Repay function operates effectively, preventing unexpected interest charges. Binance emphasizes the importance of referring to the original English version of the announcement for the most accurate information, as discrepancies may exist between translated versions. The Binance Team appreciates users' support and encourages them to familiarize themselves with the new rules and thresholds to optimize their trading strategies.