Binance Futures to Launch WLDUSD COIN-M Perpetual Contract with Up to 20x Leverage

Binance Futures is set to introduce the WLDUSD COIN-M Perpetual Contract on October 2, 2024, at 10:00 UTC, allowing traders to leverage up to 20 times their investment, according to Binance.

Key Details

The WLDUSD COIN-M Perpetual Contract will feature a funding fee settlement every eight hours. Binance has indicated that it may adjust the contract specifications, including funding fees, tick size, maximum leverage, initial margin, and maintenance margin requirements, based on market risk conditions.

Regulatory and Risk Considerations

The contract will be governed by Binance’s Terms of Use and the Binance Futures Service Agreement. Binance also noted potential discrepancies in translated versions of this announcement and advised users to refer to the original English version for the most accurate information.

In compliance with the Markets in Crypto-Assets (MiCA) regulation, from June 30, 2024, unauthorized stablecoins will face certain restrictions for users in the European Economic Area (EEA). Binance emphasized the high market risk and price volatility associated with futures trading. Users are reminded of the potential need for additional margin deposits or interest payments and the possibility of liquidation in adverse market conditions.

Additional Context

This announcement comes as Binance continues to expand its suite of derivative products, catering to the growing demand for leveraged trading options in the cryptocurrency market. The introduction of the WLDUSD COIN-M Perpetual Contract aligns with Binance’s strategy to offer diverse trading instruments to its user base.

Traders and investors should perform independent assessments of their investment strategies and consult with advisors where appropriate. Binance has reiterated the importance of responsible trading practices and provided resources on its platform to support user education.

For more information, please visit the official Binance announcement.

Image source: Shutterstock