Binance Futures Pulls LUNA Perpetual Contracts, Marked Up

Binance Futures Pulls LUNA Perpetual Contracts, Marked Up

Amid the collapse of network cryptocurrencies Terra, Luna (LUNA), and TerraUSD (UST), crypto exchange Binance continues to disable related trading services.

Binance’s derivatives arm Binance Futures has delisted LUNA perpetual contractsthe firm officially announced Thursday.

“Users are advised to close any open positions before the delisting time to avoid automatic liquidation,” the platform’s statement says.

Binance Futures has also started performing automatic liquidations on contracts, reducing leverage levels and updating margin levels for LUNA coin-margined perpetual contracts.

A) Yes, the 8x leverage level is now the maximum leverage level available on Binance for LUNA perpetual contracts, replacing the previous maximum leverage of 21-25x. The 11-20x leverage is reduced to 7x, while the 6-10x leverage is replaced with a 6x leverage levelaccording to updated data.

According to the announcement, existing positions opened before the update will not be affected.

“Binance reserves the right to further change the maximum leverage and margin levels for USDT Margined LUNA Perpetual Contracts without prior notice,” the firm added.

The latest trading updates on Binance Futures come shortly after Binance suspended withdrawals for LUNA and UST on Tuesday amid a massive token sale on the Terra network, with the UST stablecoin losing its peg to the US dollar and falling at $0.67.

Originally designed to maintain its 1:1 peg to the US dollar, the UST stablecoin crashed to $0.30 on May 11, while its sister token LUNA lost more than 99% of its value at the time of writing. The events caused an immediate shock to the broader cryptocurrency market, with the total market capitalization plummeting by around $600 billion.

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“Users are advised to close any open positions pri

Moon seven day price chart. Source: CoinGecko

By design, UST is an algorithmic stablecoin based on a system of trading between LUNA and UST, as well as burning LUNA tokens to maintain the stablecoin’s 1:1 ratio.

Unlike the UST stablecoin, major stablecoins like Tether (USDT) and USD Coin (USDC) are fiat-backed stablecoins, meaning they rely on equivalent cash reserves to maintain their value.

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