Binance to Update Managed Sub-account (MSA) Function with New Requirements and Fees
Binance, a leading cryptocurrency exchange, has announced significant updates to its Managed Sub-account (MSA) function, which will take effect from July 1, 2024. According to Binance, these changes aim to ensure an optimal user experience and maintain platform efficiency.
Key Highlights
The update introduces several new regulations and fees for MSAs, which are sub-accounts managed by trading teams under a master account. The main highlights are:
- Minimum Asset Requirement: Each MSA must maintain an account balance of at least 100,000 USD worth of assets at all times.
- Exclusion from Rebates and Discounts: MSAs will be excluded from receiving liquidity provider program rebates and any taker program discounts.
- New MSA Fee: A fee will be charged to the trading team based on the total asset value or trading volume of all MSAs under the trading team.
Minimum Asset Holding Requirement
Once an MSA is enabled, it must maintain a monthly average asset balance of at least 100,000 USD equivalent to continue operating. This requirement ensures that only well-funded accounts can utilize the MSA functions.
Restrictions in Liquidity Provider and Taker Programs
MSAs are not eligible for liquidity provider program rebates, irrespective of the master account's program tier. However, trading volume in MSAs will be counted towards the liquidity provider volume requirement of the master account. Additionally, if the master account is eligible for maker rebates, the MSA's maker fee will be zero.
Managed Sub-account Fee
The MSA fee will be charged to the trading team's master account on a monthly basis. The fee is calculated based on the total asset value and trading volume of all MSAs under the master account. The trading team will be charged the higher of the following:
- Asset Value Based Fee
- Trading Volume Based Fee
- Minimum monthly fee of 500 USDT
The Asset Value Based Fee is calculated on a progressive basis, while the Trading Volume Based Fee is calculated daily and aggregated monthly. The fee structure ensures that the costs reflect the activity level and asset holdings of the MSAs.
Terms and Conditions
Binance reserves the right to determine all calculations of volumes and fees at its sole discretion. The company can amend or terminate the Managed Sub-account function for various reasons, including compliance with laws, technical issues, or force majeure events. Any adjustments will be reviewed and approved by Binance.
For more details, please refer to the official announcement from Binance.