On the 9th of August, Binance<a href="https://www.binance.com/en/support/articles/360031860232"> released</a> a VIP structure for margin trading and borrowing. This move is to support users and their usage of the Binance Margin Trading Platform. Thanks to this new structure, VIP users of the Binance platform will be able to enjoy several benefits. This move has seen Binance add several leading cryptos for margin trading. The platform is also using this opportunity to promote new VIP levels as a way of attracting returning users.

<h2>Discounts on Daily Interest Rates for VIP Users</h2>
VIP users will now be able to enjoy the current borrowable amount and the daily interest rate. Additionally, they will have the chance to gain up to 10x the borrowable amount and discounts on the daily interest rates of up to 20%.

Users will be grouped into different VIP levels from VIP 0 to VIP 8. These levels will help determine their discount rates and the multiple for their borrowable amount. Users on the standard VIP level, or VIP 0, will not benefit from any discounts and can only gain the borrowable amount. The platform will also use the 30-day BTC volume and BNB balance to determine users' eligibility for the gains and discounts.

The 30-day trading volume and BNB balance for every VIP user will be evaluated every day at 00.00 am (UTC). One hour later, the platform will update the user's tier level as well as their corresponding trading fees.

Generally, the platform will impose a 0.1% trading fee. In clarification of <a href="https://www.binance.com/en/fee/schedule">these fees</a>, the post said in part, "By default, if you hold BNB in your account, your trading fees will be automatically subtracted from your <a href="https://www.cryptoknowmics.com/crypto/binances-boost-bnb-ready-for-43-after-july-18-signal/">BNB balance</a>. Using BNB for transaction fees applies a 25% discount to your trading fee will be applied (subject to change)."
<h2>Case Example</h2>
Presently, the standard borrowable amount on <a href="https://www.binance.com/en">Binance platform</a> is 10 BTC. Take, for example, a VIP user whose tier level is 1. Their borrowable amount multiple is 2, and they are eligible for 5% discount on their daily interest rates.

They can, therefore, borrow up to 2x the borrowable amount i.e., 2*10 BTC = 20 BTC. Suppose the daily interest rate is 0.0200%. A VIP 1 user will only be eligible to 95% of the 0.0200%. This means that the user will have a daily interest rate of 0.0190%.
<h2>Value of Binance Coin Expected to Improve</h2>
The announcement comes as good news to VIP traders on Binance platform. However, the crypto community remains skeptical with speculations of bank-like processes in the trading platform. This move will contribute to the growth of Binance in the crypto-space. As such, <a href="https://www.binance.vision/blockchain/what-is-binance-coin">Binance Coin</a>, the platform's in-house token, is expected to improve.

Binance Announces the Release of a Margin Trading and Borrowing VIP Structure

Am Wayne, a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.

Binance Announces the Release of a Margin Trading and Borrowing VIP Structure

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