Binance Portfolio Margin to Introduce Tiered Negative Balance Thresholds and Interest Charges
Starting May 17, 2025 at 00:00 (UTC), Binance Portfolio Margin will implement tiered negative balance thresholds based on VIP levels. If a user’s negative balance exceeds their assigned threshold, a daily interest fee will apply, calculated using the Binance Margin Borrow Daily Interest Rate.
Here’s how it works:
Interest applies only when the negative balance exceeds the tiered limit.
The fee is calculated at 00:00 (UTC) daily using this formula:
Interest Fee = abs(NegativeBalance) * dailyInterestRate
NegativeBalance = min(total asset balance + threshold, 0)
Example 1:
User A (VIP 9) has a -10,050 USDT balance.
Their threshold is 10,000 USDT, so the chargeable amount is -50.
With a 0.1% daily rate, the interest fee = 0.05 USDT.
Example 2:
User B (VIP 9) has a -10,050 USDT balance at 20:00 UTC, but deposits 2,000 USDT before 00:00 UTC, reducing the balance to -8,050 USDT.
Since they’re within the 10,000 USDT threshold, no interest is charged.
Important Notes:
Negative balances are only permitted if uniMMR remains above 105%.
Interest fees impact the uniMMR, which may affect your liquidation risk.
Users with Auto Repay enabled should deposit enough funds 2 hours before 00:00 UTC to avoid charges.
Stay informed and manage your Portfolio Margin wisely to avoid unnecessary fees or liquidation risks.