Exchanges Reprice Risk with Leverage Limit Adjustments

Binance and Coinbase have made adjustments to their leverage limits for certain tokens. Binance reduced the collateral ratio for six tokens, including AUCTION, BLUR, GALA, HYPER, S, and SYRUP, from 30% to 10%. This means that if a user has $100,000 in one of these assets, the recognized value would be $10,000 instead of $30,000, reducing their accepted collateral by $20,000.

The exchange also increased the ratios for ARB, TAO, and WLD from 50% to 60%. However, this is not a uniform increase, as Binance previously raised SYRUP's ratio to 30% on September 4 before reverting it back to 10% in the latest update.

The changes point to a selective repricing of risk within the platform's system. The adjustments took place on different dates, with one set of changes occurring on September 11 and another on September 18. In contrast, Coinbase International Exchange announced that 29 assets will no longer be accepted as eligible collateral on September 29.

The affected assets on Coinbase include BNB, AVAX, ARB, ONDO, PEPE, SHIB, and UNI. Accounts that rely on these assets may need to add other collateral or reduce their exposure to avoid margin calls.