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- CoinDCX restricted new futures trading on October 30 due to a Binance disruption.
- Traders can still manage existing positions, adjust margin, and process account funds.
- Binance estimated its security incident impact at approximately $6.3 billion.
CoinDCX restricted new futures trading on Oct. 30 after a disruption involving Binance, one of its liquidity providers. Customers cannot open positions or increase existing bets.
Traders can still manage existing positions and adjust margin. Deposits and withdrawals remain operational, and CoinDCX said customer funds are safe.
Traders Can Reduce Positions and Adjust Margin
CoinDCX switched futures to reduce-only mode as a precaution against liquidity risks. The restriction covers both long and short positions, preventing customers from adding exposure in either direction.
Existing positions can be reduced or closed. Traders can also add or remove margin, allowing them to change the funds supporting a position without increasing the number of contracts held.
CoinDCX’s existing Unified Buying Power feature can draw funds from an INR spot wallet to add margin to an active INR-margined futures position when the futures wallet’s available balance is insufficient. The feature does not support USDT-margined futures.
Adding margin can move a position’s liquidation price farther from the current market price. Removing margin releases some of those funds but brings the position closer to liquidation.
That leaves customers some room to respond to volatile prices while new trades are restricted. CoinDCX also said existing open orders continue to execute, although increases in position size are blocked.
Binance Liquidity Links Extend the Disruption to CoinDCX
CoinDCX’s public notice referred to developments affecting a global liquidity provider without naming it. A company spokesperson identified Binance as the provider involved.
CoinDCX’s institutional direct-market-access product combines Binance liquidity with market makers. It supports Binance’s USDT-margined perpetual contracts, with funding rates matching those on Binance.
Under that arrangement, orders that add liquidity are placed on Binance’s order book. Orders seeking an immediate match are filled by market makers at prices available on that book.
The connection helps explain why a disruption at Binance can change trading access on another exchange. Customers enter through CoinDCX, but the liquidity used to support trading can come from an external venue.
Binance has estimated the impact of its security incident at approximately $6.3 billion and pledged to cover customer losses. Its preliminary investigation pointed to a compromised employee laptop that may have enabled unauthorized withdrawal requests.
CoinDCX described the restrictions as temporary but gave no time for restoring unrestricted futures trading.
