Curriculum·R402 Margin and Liquidation Mathematics·about 33 min
Venue differences
By the end of this lesson you can
- →List the seven venue parameters that change a liquidation outcome
- →Compute how a collateral repricing moves a liquidation price on an unchanged position
- →Explain why an asset priced from a venue's own book is a different asset there
- →Compare two venues on published parameters before choosing where to hold a position
Senior · enrolled learners
This lesson opens with The Binance collateral depeg, 10 October 2025.
- What happened
- Between 21:36 and 22:16 UTC on 10 October 2025, during the largest deleveraging day recorded, USDe traded down to about $0.65 on Binance while holding close to a dollar elsewhere. BNSOL and WBETH fell similarly on the venue. The cause was that Binance priced these assets for margin, futures and loan collateral purposes from its own internal order book rather than from an index across venues, so its own thin liquidity in those pairs set the collateral value. Users holding them as collateral were liquidated on a collateral repricing rather than on any move in their positions. Binance paid $283M of compensation in two batches, computed as the difference between the market price at 00:00 UTC on 11 October and each user's liquidation price, and announced three fixes: adding redemption prices to the index calculation for all three assets, setting a minimum price threshold for USDe, and reviewing risk controls more frequently.
- The decision point
- The same asset was worth a dollar in one place and sixty-five cents in another at the same instant, and the difference was a configuration choice about where a price comes from. Nothing in the positions changed. The collateral behind them was revalued by an order book, which per R401-03 is the price a venue is supposed to protect you from rather than the one it should compute margin against.
- Recorded loss
- $283,000,000
What you will be able to answer
- →What are the seven parameters?
- →What does a collateral repricing do?
- →How much buffer does that cost?
- →Why is the price source the parameter?
Orientation and Year One are open: anyone can read them without an account. From Year Two onward the lessons are for enrolled learners, because progress through the later years only means anything if it is tracked against a record.
It is free. We do not sell the list and there is nothing to buy at the end of it.
Sources and review
- https://www.theblock.co/post/374295/binance-pays-283-million-in-compensation-following-fridays-depegs-covering-user-losses
- https://www.theblock.co/post/374278/binance-to-compensate-some-users-after-several-markets-depeg-there-are-no-excuses
- https://www.coindesk.com/markets/2025/10/12/binance-to-compensate-users-affected-by-crash-in-wbeth-bnsol-and-ethena-s-usde
- https://www.coindesk.com/markets/2025/03/26/hyperliquid-delists-jellyjelly-after-vault-squeezed-in-usd13m-tussle
Confidence medium·Volatility high·Reviewed 2026-08-07·Owner unassigned
Contested
Whether the depeg was purely a liquidity and configuration event or was deliberately induced was debated at the time, with at least one research head publicly arguing it was engineered. The venue's own account attributes it to using internal order book pricing for collateral. This lesson relies on the configuration point, which both readings share, and takes no position on intent.
Venue parameters in this area change frequently and Binance announced fixes within days. Every figure here should be treated as a snapshot of one incident rather than a description of any venue's current rules. The seven parameters are durable and their values are not.
J302-11 owns the Hyperliquid validator override as a governance question about who may decide a price. This lesson owns the venue parameter comparison. Keep the split.