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Binance Resumes Normal Operations for UM Contract Trading

Binance Resumes Normal Operations for UM Contract Trading

Binance restored USD-margined futures after a 24-minute suspension, underscoring the sensitivity of stablecoin-settled derivatives to operational disruptions at the exchange.

USDT
USDC

Fact Check
Evidence 1 directly reports that Binance restored futures trading, which includes USDⓈ-M (UM) contracts, after a brief outage. This is strongly corroborated by multiple official Binance sources (2, 3, 4, 6, 7, 9) which demonstrate ongoing, normal operations for USDⓈ-M futures, such as new contract launches, feature updates, and routine maintenance announcements.
    Reference: 123
Summary

Binance temporarily suspended all futures trading on Aug. 29 due to an issue affecting USD-margined (UM) contracts. The halt, announced at 06:35 UTC, was lifted at 07:00 UTC after the exchange confirmed the problem had been resolved. Binance stated that all futures trading is now fully operational but did not disclose the cause. The disruption, confined to UM contracts settled in USDT or USDC, raised attention for derivatives participants relying on stablecoin-based instruments. Market data showed Bybit leading Binance in liquidation activity over the past 24 hours, with Binance experiencing a higher rate of short liquidations compared to the market. No user impact figures or compensation mechanisms were mentioned.

Terms & Concepts
  • UM contract: USD-margined futures contracts on Binance, settled using stablecoins like USDT or USDC.
  • Coin-margined contract: Futures contracts on Binance that are margined and settled using the underlying cryptocurrency instead of stablecoins.
  • Liquidation: The forced closure of a trader’s leveraged position when collateral is insufficient to cover potential losses.