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Disclaimer: This FAQ Page is for general information and educational purposes only. It does not constitute legal terms or any form of legal agreement between you and Binance. It should not be construed as financial, legal or other professional advice. The information on this page may be outdated. For legal terms applicable to Futures and Options Trading Services, please refer to the Terms of Use, the Exchange Rules (including the Exchange Procedures) and the Clearing Rules (including the Clearing Procedures) which come into effect on 5 January 2026. Additional terms and conditions will also be set out in the Contract Specifications applicable to the relevant Derivatives contract.
Auto-Exchange is a mechanism to ensure that the Asset Wallet Balances in the USDⓈ-M Futures Wallet do not fall below a certain threshold.
When Auto-Exchange is triggered, all positive balance assets under the USDⓈ-M Futures Wallet are automatically and proportionally converted at market price by the Auto-Exchange service engine to cover the corresponding Asset Wallet Balance deficit.
For Regular and VIP 1 Users, Auto-Exchange Threshold will be -5,000 USDT, -5,000 USDC, -5,000 BNFCR or -0.1 BTC. For all other users, the Auto-Exchange Threshold will be -10,000 USDT, -10,000 USDC, -5,000 BNFCR or -0.1 BTC.
1. When the user’s Asset Wallet Balance is lower than the Auto-Exchange Threshold, the Auto-Exchange service engine will proportionally convert other assets in the USDⓈ-M Futures Wallet to cover the deficit.
For Regular and VIP 1 Users, when Asset Wallet Balance is less than Auto-Exchange Threshold (-5,000 USDT/USDC/BNFCR or -0.1 BTC). For all other users, when Asset Wallet Balance is less than Auto-Exchange Threshold (-10,000 USDT/USDC or -5,000 BNFCR or -0.1 BTC).
2. In the case of liquidation, Auto-Exchange will be immediately triggered if the Asset Wallet Balance in the USDⓈ-M Futures Wallet is insufficient to cover the deficit.
3. When there is a negative balance in User’s USDⓈ-M Futures Wallet with no existing positions or open orders, the system will continuously calculate the LTV (Loan-To-Value) ratio and trigger Auto-Exchange when LTV ≥ 0.995.
Note: LTV = abs(∑negative asset WalletBalance in USD value * (1 + Auto-Exchange Haircut)) / ∑positive asset WalletBalance in USD value * (1 - Auto-Exchange Haircut)
Using a Regular or VIP 1 User with positive BTC and negative USDC balance for example,
When the user’s USDC balance hits -5,000 USDC, Auto-Exchange will be triggered. 5,000 USDC / 97.5% = 5,128.20 USDC of user’s BTC will be converted to USDC to balance the wallet.
Do note that while Auto-Exchange doesn’t charge any fees, there are haircut rates (also referred to as the collateral rate) that will be applied to the Auto-Exchanged assets to mitigate the liquidity risks.
In the event there are multiple assets under Multi-Asset Mode, when the Auto-Exchange is triggered, they will be automatically converted to negative assets according to the proportion of each asset. In order to avoid the loss of Automatic-Exchange, users can transfer or exchange independently before reaching the Automatic-Exchange threshold.
Auto-Exchange can help balance your account and increase the utilization rate of funds in case of losses.
While Auto-Exchange doesn’t charge any fees, the following haircut rates (also referred to as the collateral rate) apply to the Auto-Exchanged assets to mitigate the liquidity risks:
| Assets | Auto-Exchange Haircut |
| BTC | 2.5% |
| ETH | 2.5% |
| BNB | 5% |
| ADA | 5% |
| XRP | 5% |
| DOT | 5% |
| SOL | 5% |
| USDT | 0.01% |
| USDC | 0.01% |
| BNFCR | 0.0% |
| BFUSD | 0.10% |
Example 1 (VIP 2 Client):
You’re trading in the Multi-Assets Mode. Your USDⓈ-M Futures Wallet has a positive BTC balance and a negative USDC balance.
Let’s assume your USDC balance falls to -20,000 USDC, which triggers the Auto-Exchange (below the -10,000 USD threshold), taking into account the 2.5% haircut rate in the process.
Subsequently, 20,000 USDC / 97.5% = 20,513 USDC of your BTC balance will be converted to USDC to cover the negative USDC balance in the USDⓈ-M Futures Wallet.
Example 2:
Under the Multi-Assets Mode, you don’t have any existing position or open order, and the USDⓈ-M Futures Wallet balance is 1 BNB + (-600) USDC
Your LTV = abs(-600)/(700 * (1 - 5%)) = 0.90 < 0.995, Auto-Exchange will not be triggered;
Your LTV = abs(-600)/(600 * (1 - 5%)) = 1.05 ≥ 0.995, Auto-Exchange will be triggered. Your BNB will be converted to USDC to clear the negative USDC balance.
To avoid triggering Auto-Exchange, you can convert or transfer margin assets to the USDⓈ-M Futures Wallet to maintain the negative balance below the -10,000 USD threshold. If you don't have any existing positions or open orders and there is a deficit in your USDⓈ-M Futures Wallet, you are advised to convert or transfer sufficient margin assets to the USDⓈ-M Futures Wallet in a timely manner to prevent the account LTV from going above 0.995, which would trigger Auto-Exchange.
To reduce risks, Binance may temporarily adjust the Auto-Exchange threshold and execute the conversion automatically. You may notice that the balance of a certain asset in your USDⓈ-M Futures Wallet is negative. However, this does not necessarily mean the balance of your USDⓈ-M Futures Wallet is at a loss.
To learn more, visit the Multi-Assets Mode FAQs page.
