Binance’s $400 million relief package, the “Together Initiative,” provides up to $300 million in USDC to reimburse retail traders hit by forced liquidations and a $100 million institutional support fund offering low-interest loans to eligible partners and VIP clients to restore liquidity and market confidence.
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Immediate compensation and loans to restore user confidence and market stability.
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Up to $300 million in USDC will be distributed to eligible traders; $100 million is reserved for institutional support.
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Eligibility, payout timing, and protection measures: liquidations > $50 and >30% NAV qualify; payouts start within 24 hours and finish within 96 hours.
Binance $400 million relief package announced: Together Initiative compensates traders and funds institutions—see eligibility, payout timing, and COINOTAG’s October 14 update.
Published: October 14, 2025 | Updated: October 14, 2025 | By COINOTAG
What is the Binance $400 million relief package?
Binance $400 million relief package—branded the “Together Initiative”—is a two-part support program that provides up to $300 million in USDC to individual traders affected by forced liquidations and a $100 million Institutional Support Program offering low-interest loans to eligible ecosystem partners and VIP clients. The package aims to restore confidence after a weekend depeg and related market disruptions.
How will the Together Initiative compensate users and institutions?
Binance will distribute payouts to individual traders whose forced liquidation losses exceeded $50 and represented at least 30% of net asset value during the crash window. Payouts are slated to begin within 24 hours of the announcement and conclude within 96 hours, with funds sent directly to spot accounts.
The $100 million Institutional Support Program will offer low-interest loans to eligible firms and VIP clients via account managers to ease liquidity shortages and help firms resume trading. The exchange also outlined technical fixes such as incorporating redemption prices into token price-index weights and minimum price thresholds for USDe.
Frequently Asked Questions
Who qualifies for Binance’s $300 million USDC compensation?
Traders whose forced liquidation losses between 00:00 UTC October 10 and 23:59 UTC October 11 exceeded $50 and amounted to at least 30% of their net asset value are eligible. Binance will validate losses and credit payouts directly to users’ spot accounts during the announced timeline.
When will Binance pay affected users?
Payouts begin within 24 hours of the announcement and are expected to be completed within 96 hours. Eligible users will receive USDC directly in their spot accounts; institutional clients can request assistance through account managers for loan access under the Institutional Support Program.
Background and context
Between 21:36 and 22:16 UTC on October 10, a platform glitch caused price distortions for USDe, BNSOL, and WBETH, briefly causing those tokens to lose their pegs and triggering forced liquidations. Binance conducted a review and committed to reimbursing impacted users across Futures and Margin trading for the specified dates. The company emphasized that the relief package is intended to rebuild confidence rather than serve as an admission of legal liability.
Binance highlighted steps to strengthen system resilience, including adding redemption prices into price-index weights for affected tokens, introducing minimum price thresholds for USDe, and increasing the frequency of risk-parameter reviews. The exchange framed the initiative as part of a broader effort to support the industry’s long-term growth and user trust.
Key Takeaways
- Compensation structure: Up to $300 million in USDC for eligible retail traders; $100 million for institutional support through low-interest loans.
- Eligibility and timeline: Losses > $50 and >30% of NAV qualify; payouts start within 24 hours and complete within 96 hours.
- Technical safeguards: Binance added redemption prices to token index weights, minimum price thresholds for USDe, and will perform more frequent risk-parameter reviews to mitigate future depeg events.
Conclusion
The Binance $400 million relief package, announced as the Together Initiative, combines direct USDC reimbursements for impacted traders with institutional liquidity support to stabilize markets after the October depeg event. COINOTAG will monitor implementation and report updates; affected users should check their accounts for incoming payouts and consult Binance account managers for institutional loan eligibility.
Sources referenced (plain text): Binance statement, internal exchange review, on-chain and exchange data, industry observers.
