Important Updates for Binance Managed Sub-account (MSA) Function
Binance, a renowned cryptocurrency exchange, has recently announced significant updates to its Managed Sub-account (MSA) function, scheduled to be effective from July 1, 2024. The objective behind these changes, as stated by Binance, is to enhance user experience and platform efficiency. Here are the key highlights:
Key Highlights
- New Regulations: Several new regulations and fees will be introduced for MSAs, which are sub-accounts managed by trading teams under a master account.
- Minimum Asset Requirement: Each MSA must maintain a minimum account balance of 100,000 USD worth of assets at all times.
- Exclusion from Rebates and Discounts: MSAs will no longer receive liquidity provider program rebates or taker program discounts.
- New MSA Fee: A fee will be levied on the trading team based on the total asset value or trading volume of all MSAs under the team.
Minimum Asset Holding Requirement
Upon activation, an MSA must sustain a monthly average asset balance of at least 100,000 USD equivalent to remain operational. This criterion aims to ensure that only adequately funded accounts can utilize the MSA features.
Restrictions in Liquidity Provider and Taker Programs
MSAs are ineligible for liquidity provider program rebates, regardless of the master account’s program tier. Notably, the trading volume within MSAs will contribute towards the liquidity provider volume requirement of the master account. Furthermore, if the master account qualifies for maker rebates, the MSA’s maker fee will be zero.
Managed Sub-account Fee
The MSA fee will be debited to the master account of the trading team on a monthly basis. This fee calculation is based on the total asset value and trading volume of all MSAs under the master account. The higher of the following will be charged:
- Asset Value Based Fee
- Trading Volume Based Fee
- Minimum monthly fee of 500 USDT
The Asset Value Based Fee is computed progressively, while the Trading Volume Based Fee is calculated daily and consolidated monthly. This fee structure aims to align costs with the activity level and asset holdings of the MSAs.
Terms and Conditions
Binance retains the authority to determine all volume and fee computations at its discretion. The company reserves the right to modify or discontinue the Managed Sub-account function for various reasons, including legal compliance, technical glitches, or force majeure events. Any alterations will undergo review and approval by Binance.
For more information, kindly refer to the official announcement from Binance.
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Hot Take: Stay Informed and Adapt Accordingly
As a savvy crypto enthusiast, it’s crucial to stay abreast of the latest developments, such as the updates announced by Binance regarding its Managed Sub-account (MSA) function. By being informed and adapting to these changes, you can navigate the crypto landscape more effectively and make informed decisions in your trading strategies. Embrace these updates as part of the evolving crypto ecosystem and leverage them to your advantage.
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