How to open contract cooling-off period on Binance

Traders experiencing negative equity in Binance's perpetual futures contracts can initiate a 24-hour cooling-off period to evaluate their trading behavior and prevent further losses.

Nov 13, 2024 at 02:21 am

How to Open a Contract Cooling-Off Period on Binance

Step 1: Eligibility Assessment

• To initiate a contract cooling-off period on Binance, traders must meet certain eligibility criteria.

• Eligible traders must have:

  • A Binance account in good standing
  • Completed KYC verification
  • Traded futures contracts within the past 6 months
  • Experienced negative equity in a perpetual futures contract within the last 24 hours

Step 2: Request Submission

• Eligible traders can submit a cooling-off period request through the Binance Support Center.

• The request should include the following information:

  • Binance UID
  • Email address registered with Binance
  • Screenshot of the negative equity balance
  • Brief description of the triggering event (e.g., market volatility, trading error)

Step 3: Verification and Approval

• Binance will review the request and verify the trader's eligibility.
• If the request is approved, Binance will initiate the cooling-off period.
• Approval typically takes 1-2 business days.

Step 4: Cooling-Off Period Activation

• Once approved, the cooling-off period will be activated for a duration of 24 hours.
• During this period, all margin trading and leveraged futures contracts on the trader's account will be locked.
• The trader will be restricted from opening new positions or closing existing positions during the cooling-off period.

Step 5: Reflective Assessment

• The cooling-off period provides traders with a period of introspection to evaluate their trading behavior and identify areas of improvement.

• Traders are encouraged to use this time to:

  • Review trading records and identify patterns leading to losses
  • Assess risk tolerance and make adjustments to trading strategies
  • Explore educational resources to enhance trading knowledge

Step 6: Cooling-Off Period Conclusion

• At the end of the 24-hour cooling-off period, the trader's trading privileges will be restored.
• However, traders are cautioned to approach trading with caution after the cooling-off period and to implement the lessons learned during the reflective assessment.

Additional Notes:

• The contract cooling-off period on Binance is a voluntary measure designed to provide traders with an opportunity to mitigate potential losses.
• Traders are encouraged to use this tool responsibly and to seek professional guidance if needed.
• Binance reserves the right to reject a cooling-off period request if the trader does not meet the eligibility criteria or if the request is deemed to be fraudulent.