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.

Image
source:
Shutterstock

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