Binance Launches $400M “Together Initiative” to Support Users Amid Market Turbulence

Binance has launched the $400 million Together Initiative, providing targeted support to users and institutions affected by recent market volatility. The initiative includes $300 million in USDC compensation for eligible traders and a $100 million low-interest loan fund for institutional users.

The program aims to address losses caused by forced liquidations during a period of extreme market fluctuations while reinforcing industry confidence. Binance emphasizes that this initiative does not imply liability for users’ losses.

Market Volatility and Its Impact

The crypto market recently experienced a sharp downturn triggered by multiple macroeconomic and geopolitical factors, including President Donald Trump’s announcement of 100% tariffs on imports from China. This event contributed to roughly $20 billion in open interest being wiped out within 24 hours.

According to Coinglass data, about 1.7 million traders were liquidated, marking one of the largest liquidation events in crypto history. During this period, several tokens issued by Binance—including USDe, BNSOL, and WBETH—depegged, creating further liquidity stress across the platform.

Binance co-founder and chief customer support officer Yi He publicly apologized for these disruptions, particularly noting the impact on users holding affected tokens.

The Together Initiative: Key Components

The $400 million Together Initiative has two main components:

$300 Million in USDC for Eligible Users

Binance will distribute between $4,000 and $6,000 in USDC per user, totaling $300 million. The compensation is aimed at users who suffered forced liquidation losses on Futures and Margin trading from October 10, 2025, 00:00 UTC to October 11, 2025, 23:59 UTC.

Eligibility requirements include:

• A total liquidation loss of at least $50 equivalent
• Liquidation losses representing at least 30% of a user’s net assets, based on a snapshot from October 9, 2025, 23:59 UTC
• Users who have already received compensation are excluded

The exact USDC amount will be calculated based on individual liquidation loss, loss ratio, and other factors. Distribution is expected to begin within 24 hours, with completion targeted within 96 hours via users’ Spot Accounts. Users will be notified through the Binance app and email.

$100 Million Low-Interest Loan Fund for Institutions

In addition to the USDC compensation, Binance has established a $100 million low-interest loan fund to assist ecosystem and institutional users impacted by the market volatility.

The loan fund is designed to:

• Help institutions restart trading operations
• Inject momentum into the broader crypto ecosystem
• Alleviate liquidity pressures for ecosystem participants
• Maintain operational stability for institutional partners

Eligible VIP and institutional users can apply through dedicated account managers. Binance has emphasized that all applications will be handled confidentially with fast response times.

Technical Safeguards and Risk Controls

Binance has implemented several measures to prevent similar disruptions in the future:

• Redemption prices included in price index weights for affected tokens
• Minimum price thresholds established for USDe to improve stability
• Frequent review of risk parameters to monitor market exposure
• Real-time smart signal tools to track market moves and assist users in decision-making

The exchange also conducted a thorough review of the depeg event for USDe, BNSOL, and WBETH, which occurred between 21:36 and 22:16 UTC on October 10. All affected users who experienced forced liquidations during the event window are being reimbursed.

Industry and User Perspective

Industry observers view Binance’s $400 million initiative as a substantial response to market stress. While the relief fund does not indicate legal liability, it is positioned as a user-centric support measure.

Binance stated: 

“As the industry leader, we expect some level of scrutiny, fair or unfair. However, users are always our first priority. That is what makes us who we are. Without our users' support, there would be no Binance.”

The company emphasized that its focus remains on long-term industry development and maintaining user trust. Additionally, Binance has been actively engaging users through trading competitions, encouraging participation and providing rewards during volatile market periods.

Conclusion

The $400 million Together Initiative consolidates Binance’s efforts to stabilize its platform and assist both retail and institutional users during recent market volatility.

• $300 million USDC compensation targets individual traders affected by forced liquidations
• $100 million low-interest loan fund supports institutional and ecosystem participants
• Technical safeguards and risk controls aim to reduce the likelihood of similar disruptions

By focusing on these concrete measures, Binance provides tangible support to the market without assuming liability for user losses.

Resources: 

1. Binance’s announcement about the “Together Initiative”: https://www.binance.com/en/support/announcement/detail/3d45a1ab541f463982d59c8de85e36b8

2. Trump announces extra 100% tariff on Chinese goods starting next month - report by CBS News: https://www.cbsnews.com/news/trump-china-tariff-extra-100-november/

3. Binance X platform: https://x.com/binance