Binance Futures to Implement Last Price Protection on TACUSDT Perpetual Contract

Binance Futures to Implement Last Price Protected Mechanism for TACUSDT Perpetual Contract

Binance Futures will implement a Last Price Protected (LPP) mechanism on its USDⓈ-Margined TACUSDT Perpetual Contract starting August 27, 2026, at 11:00 (UTC). This decision comes in response to observed divergences in the spot price of TAC across multiple exchanges. The exchange assures users that their funds on Binance remain secure.

Gradual Implementation and Price Stability

The LPP mechanism will be introduced gradually through a mark price smoothing process. This approach is designed to minimize sudden price fluctuations and ensure greater price stability during the transition period.

LPP Period Duration and Exit Criteria

The LPP period for the USDⓈ-Margined TACUSDT Perpetual Contract will conclude when the spot price of TAC (TAC Protocol) converges across various exchanges, allowing for the derivation of a stable index price from spot markets, as determined by Binance.

A separate announcement will be issued to notify users when the LPP period ends and the contract is ready to revert to the standard Mark Price calculation, which is determined by the median of Price 1, Price 2, and the Contract Price. The duration of this transition period will be contingent on market volatility and the availability of a stable index price.

Last Price Protected Mechanism Details

Under the LPP mechanism, the mark price is calculated based on the average of recent transaction prices for the perpetual contract within a defined timeframe. Specifically, the Mark Price is computed as the average of trade prices over the last 10 seconds, with calculations performed every second.

If fewer than 21 transaction prices are recorded within a 10-second interval, the system will extend its lookback to the past 100 seconds. If more than 21 transaction prices are available within that longer period, the average will be based on those prices. Otherwise, the average will be derived from the last 100 transaction prices of the contract.

Furthermore, a price cap of ±1% will be applied to the mark price, limiting its change within this range per second.

Transition to Standard Mark Price Calculation

Upon the conclusion of the LPP period for the contract, the Mark Price will revert to the following formula: Mark Price = Median (Price 1, Price 2, Contract Price). Users can find the formulas for Price 1 and Price 2 within the USDⓈ-Margined Futures section detailing Mark Price and Price Index.

Funding Rate Adjustments

The capped funding rate will be adjusted from the previous range of ±2.00% to ±0.005% effective August 27, 2026, at 11:00 (UTC). The schedule for these adjustments is as follows:

• August 27, 2026, 08:00 (UTC): Maximum Funding Rate of +2.000% / -2.000%
• August 27, 2026, 12:00 (UTC): Maximum Funding Rate of +0.005% / -0.005%
• August 27, 2026, 16:00 (UTC): Maximum Funding Rate of +0.005% / -0.005%
• August 27, 2026, 20:00 (UTC): Maximum Funding Rate of +0.005% / -0.005%

Contract Exemptions and Future Funding Rate Rules

The aforementioned contract is exempt from the standard rule 8.1 concerning the Adjustment of Funding Interval. The funding interval will not be adjusted from every four hours to every one hour when the previous funding rate settlement for this contract reaches the capped funding rate.

Once the LPP period concludes, the funding rate will revert to the standard rules for perpetual futures contracts, with maximum and minimum rates potentially reaching ±2.00%. In such cases, the funding interval will be adjusted from every four hours to every one hour when the previous funding rate settlement hits ±2.00%.

Users are encouraged to refer to the following resources for further details:

• Trading Rules to Trading Parameter
• Funding Rate History
• Mark Price and Price Index
• Binance Futures Contract Specification

Important Notes

This information is issued as a Notice under Binance Exchange Rule 17.

During the LPP period, Binance Futures will be the sole component of the price index.

A stricter maximum price will be enforced during the LPP period. Binance reserves the right to adjust this maximum price as market risk conditions dictate. API users can access this information via GET /fapi/v1/exchangeInfo, while UI users can find the latest maximum price on the designated page.

Binance may also adjust the specifications of this Futures contract, including funding fees, tick size, maximum leverage, and initial/maintenance margin requirements, based on prevailing market risk conditions. Users should consult the Trading Rules for the most up-to-date information on any such adjustments.