The exchange announced it was performing automatic settlements on all existing coin-margined LUNA perpetual contracts, advising users to close their positions immediately. As of May 12, coin-margined LUNA perpetuals will be delisted.
Binance is also updating the leverage and margin tiers of the USDT-margined LUNA perpetuals, reducing the maximum leverage from 21-25x to 8x. With the LUNA crisis still in full swing, the maximum leverage and margin tiers could be further updated without prior notice, Binance added.
The decision is part of Binance’s broader strategy to alleviate the negative impact of the LUNA crash, which also included recurring suspensions of LUNA withdrawals as pending withdrawal transactions were congesting the network. Binance insisted that users’ assets were secure, and Binance CEO Changpeng Zhao drove it home tweeting that the market must be “respected,” even if “it doesn’t always make sense.”
The stablecoin run by Binance, BUSD, has fared relatively well in the ongoing crypto market crash, maintaining its peg without any major interruption. It now ranks seventh on CoinMarketCap, up from #11 on May 8. Binance token BNB is in red along with much of the market, experiencing 7-day losses of 32%.