Binance Slashes Collateral Ratios for 10 Altcoins in Portfolio Margin Update

Crypto exchange giant Binance has announced changes to the collateral ratios of ten altcoins under its Portfolio Margin program, sparking speculation over potential

Crypto exchange giant Binance is introducing changes to the collateral ratios of ten altcoins as part of its Portfolio Margin program, set to take effect on April 18 at 06:00 UTC.

The affected tokens are DENT, ENJ, NOT, DASH, CHZ, AXS, ENS, SAND, THETA, and QNT, all of which will see reductions in their collateral ratios. These ratios determine the percentage of an asset’s value that users can use to borrow funds.

Lower collateral ratios translate to lower margin buying power for traders employing those tokens as collateral, potentially leading to strategic portfolio adjustments and, in cases of overexposure, liquidations.

This shift in buying power may also influence market dynamics, potentially placing downward pressure on some of these tokens, especially given the potential for increased liquidations and the role of collateral ratios in calculating the Unified Maintenance Margin Ratio (uniMMR), a crucial factor in determining 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 stated in a press release.

The changes in collateral ratio come as traders navigate a market in consolidation, with some tokens experiencing significant price drops.

Binance's announcement does not specify the new collateral ratio figures for each token, leaving traders to keep an eye out for the updates on April 18.

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