Binance Margin to Update Cross Margin Classic Formulas, Raising Liquidation Risk Considerations

According to the announcement from Binance, Binance Margin will update the formulas used to calculate Margin Level, Borrow Margin Level, and Transfer-out Margin Level for Cross Margin Classic mode at 2026-06-15 08:00 (UTC). The exchange said the change is intended to reflect collateral haircuts more directly in margin calculations, which may affect how users’ margin health is assessed after orders are placed and as positions are maintained.

Open Order Loss: Binance said that, due to collateral haircuts, the collateral value of assets intended to be bought in an open order may be lower than the collateral value of assets intended to be sold in the same order. Under the updated approach, this loss in collateral value will be recognized at the time the order is placed and will be factored into the calculations for Margin Level, Borrow Margin Level, and Transfer-out Margin Level. Liquidation risks: Binance said collateral haircuts will also be applied when calculating collateral values as part of Margin Level calculations. It added that users holding assets subject to collateral haircuts after the update could face a higher risk of liquidation because Margin Levels may drop under the new calculation logic. Binance directed users to the Cross Margin Collateral Ratio, where the original value is 100%, for updated parameters and referenced its Cross Margin FAQ and margin trading guides for additional context.