Fresh Release of Binance MSA Fee Tiers

Binance’s new MSA fee structure removes discount programs, introduces asset and trading volume-based fees, and requires a $100,000 minimum daily average asset to optimize volume and concentration among large managers

Fresh Release of Binance MSA Fee Tiers

Binance MSA program announcement

After the hasty announcement that the MSA rule would not be continued in April, Binance has now officially announced the new fee structure. For more details, visit: Binance's Announcement.

Key takeaways:

  • The market maker and taker discount programs have been removed from the MSA. However, investors (even those on a low VIP tier) can still share the trading team's fee tier, subject to an additional fee to Binance.
  • Each trading team will be charged either the Asset Value Based Fee or the Trading Volume Based Fee, whichever is higher, with a minimum of 500 USDT.
    • The Asset Value Based Fee is annualized by tiers of the manager. If the manager's AUM is below 2.5 million, it's annualized at 2% (monthly 0.167%); if above 25 million, it's annualized at 0.5% (monthly 0.042%).
    • The Trading Volume Based Fee is 0.1 basis points for derivatives and 0.2 basis points for spot transactions.
  • Each MSA must maintain at least $100,000 in average daily assets.

Some interpretations:

This well-designed rule maximizes Binance's interests while keeping prime brokerages in business, albeit at about half of their previous income. It ensures the MSA is used with decent trading volume and asset concentration in large managers. For example, suppose a trading strategy with 1 million AUM has a turnover of 100% every day on half spot and half perpetual swap transactions. The asset value based fee would be $417, while the trading volume based fee would be $450, so the investor would end up paying $450.

I think the market shares the same opinion that this benefits to Binance (15m chart shows a BNB/USDT price pump right after the announcement)

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