Crypto exchange giant Binance has announced changes to the collateral ratios of ten altcoins under its Portfolio Marginprogram, sparking speculation over potential price pressure ahead of the update’s implementation.
In a press release issued Saturday, April 12, Binance confirmed that DENT, ENJ, NOT, DASH, CHZ, AXS, ENS, SAND, THETA, and QNT will all see their collateral ratios reduced. The changes are scheduled to go live on April 18 at 06:00 UTC, with new figures displayed on the platform starting that day.
Lower collateral ratios reduce the percentage of an asset’s value that users can use to borrow funds. This, in turn, decreases the margin buying power for traders using those tokens as collateral, a move that may prompt strategic portfolio rebalancing and trigger liquidations for those overexposed.
Market Implications and Risk Signals
With reduced borrowing capabilities, traders may be forced to close or reduce margin positions, leading to downward pressure on some of these tokens. In times of high volatility or low liquidity, such changes can amplify price swings.
Binance also noted that these adjustments would impact the Unified Maintenance Margin Ratio (uniMMR), a key figure used to determine margin account health across multiple positions.
“Users should monitor uniMMR closely to avoid any potential liquidation or losses that may result from the change of collateral ratio,” Binance cautioned.
This portfolio margin update comes as traders remain cautious amid broader crypto market consolidation. While Binance did not clarify the magnitude of collateral ratio changes per token, the warning is clear: monitor your positions or risk getting liquidated.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/binance-slashes-collateral-ratios-for-10-altcoins-in-portfolio-margin-update/