Binance has reduced the VIP borrowing threshold from USDT 100,000 to USDT 50,000. 1. Lower the threshold and expand the service coverage, making it easier for medium and large investors to participate in leveraged trading; 2. Provide fund efficiency advantages such as low interest rates, flexible mortgages, and diversified strategies; 3. Maintain strict risk control, including margin requirements, real-time risk monitoring and KYC2 certification. This move improves user funding efficiency and promotes the development of the derivatives market, marking Binance's strategic layout of further optimizing institutional-level services.

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Binance VIP borrowing threshold has been greatly reduced, and 50,000 USDT can open new opportunities for leverage trading

Binance, the world's leading cryptocurrency exchange, recently announced that it has significantly lowered the minimum threshold for VIP borrowing services, from the original assets of 100,000 USDT to 50,000 USDT (including mainstream currencies such as BTC and ETH). This adjustment aims to lower the funding threshold for professional users and institutions to participate in leveraged trading and arbitrage strategies, and further optimize the funding efficiency of high-net-worth customers.

Lower thresholds and expand service coverage

Borrowing is a leverage tool exclusive to Binance VIP users, allowing users to borrow other tokens through collateral assets for long and short transactions, arbitrage or liquidity management. Previously, the service was only open to users with an account balance of ≥100,000 USDT, and the new rules will expand the coverage to medium-sized investors with a USDT level of 50,000 USDT, allowing more traders to use Binance's liquidity pool at a lower cost.

Funding efficiency and cost advantages

The core advantages of currency borrowing services are:

1. Low interest rate: VIP users can enjoy a tiered interest rate. The higher the position, the lower the interest rate for borrowing coins (such as the lowest BTC daily interest rate of 0.01%).

2. Flexible collateral: Supports multiple mainstream coins as collateral, and the collateral ratio is differentiated according to the currency volatility.

3. Diversified strategies: suitable for complex operations such as hedging, futures and spot arbitrage, and wide leverage mining.

After this threshold is lowered, small and medium-sized institutions or professional individual investors can participate in high-frequency strategies at a lower cost, especially quickly capturing opportunities when market volatility intensifies.

Risk control and compliance guarantee

Despite the lower threshold, Binance maintains strict risk management mechanisms:

• The mortgaged assets must meet the requirements for maintaining margin ratios to avoid forced closing of positions;

• Real-time monitoring of account risk rates and supports automatic repayment function;

• Only available to users certified by KYC2 and above.

Market impact and user feedback

Industry analysts believe the move could intensify the competition among exchanges for high-net-worth users while driving more capital into the crypto derivatives market. Some users said that the threshold of 50,000 USDT is more in line with the actual needs of "professional retail investors", especially in a bear market, where positions can be managed more flexibly.

Binance continues to optimize the VIP service system, reflecting its strategy to consolidate its institutional-level market position. In the future, as the compliance process advances, similar services may further move closer to mainstream financial products.

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