Program Components: Vouchers + Loan Fund
The relief package has two main elements:
- •$300 million in token vouchers: These will be distributed to eligible users in amounts between small and large denominations (e.g. $4 up to $6,000).
- •$100 million low-interest loan facility: Designed to help liquidity‑strained institutional and ecosystem actors navigate the turbulence.
The rollout is expected to be completed within 96 hours after approval.
Who Qualifies? Loss Thresholds & Conditions
To be eligible, users must have suffered:
- •Forced liquidations on futures or margin trades during a specific window (from October 10, 2025, 00:00 UTC to October 11, 2025, 23:59 UTC)
- •Minimum loss of $50 in crypto
- •Losses that amount to at least 30% of their total net assets (based on a snapshot taken just before the crash)
These criteria are intended to focus relief on those most impacted, rather than widely across all users.
Why Binance Is Taking This Step
The exchange says that while it does not accept formal responsibility for every user’s losses, the move is meant to rebuild industry trust following the severe volatility. Binance previously activated other compensatory measures in response to the crash, bringing the total support (including airdrops and immediate reimbursements) to nearly $728 million across its ecosystem.
Market Turmoil Triggered the Need
The crash was triggered by macro news and large leveraged liquidations—resulting in over $19 billion in positions being cleared in 24 hours. The volatility exposed infrastructure stress: some users reported technical issues preventing position closures, and anomalies appeared in pricing for certain altcoins, which at times displayed as zero value on Binance.
These glitches and unstable oracle feeds added to the panic, pushing Binance’s platform under intense scrutiny.
Community Reaction: Mixed Praise and Criticism
User sentiment on social platforms has been sharply divided:
- •Some praised Binance for acting swiftly and showing accountability.
- •Others dismissed the voucher model as inadequate, especially for users who lost large amounts.
- •Critics also highlighted underlying system faults, such as mispriced oracles or trading engine weaknesses, as root causes needing correction—not just financial patchwork.
What’s Next to Monitor
- •Voucher redemption and loan uptake: How many affected traders will benefit and how fast?
- •System upgrades: Will Binance commit to technical fixes to prevent similar collapses?
- •Regulation & oversight: Whether regulators will pressure exchanges to adopt clearer liability rules.
- •Moral hazard: Will such relief programs become expected, or will they spur riskier behavior?
Bottom Line: Binance’s $400 million relief program marks a bold gesture in the aftermath of a week of extreme volatility. Though it doesn’t amount to full liability acceptance, the package could help stabilize sentiment. The bigger test will be whether execution is fair, effective, and paired with stronger system safeguards to prevent future meltdowns.