Binance to End TACUSDT Last Price Protection on Sept. 7
Binance Futures is preparing to end the Last Price Protected (LPP) mechanism for its USDⓈ-Margined TACUSDT Perpetual Contract, introducing changes to how the contract's Mark Price and funding rates are determined.
According to a Binance Exchange Notice published on Sept. 7, 2026, the transition from the LPP mechanism to the standard Mark Price calculation will begin at 06:00 UTC. Binance said the transition may take up to three hours depending on market volatility and the availability of a stable index price.
The exchange will apply the change gradually through a Mark Price smoothing process designed to reduce sudden price movements during the transition. Binance also confirmed that trading will continue normally, while open orders and existing positions will remain in place.
TACUSDT Mark Price Will Move to Standard Calculation
The most important change concerns the Mark Price used for the TACUSDT perpetual contract.
After the LPP period ends, Binance will calculate the Mark Price using the median of three components:
Mark Price = Median (Price 1, Price 2, Contract Price)
The exact formulas used to determine Price 1 and Price 2 are explained in Binance's official Mark Price and Price Index documentation.
Mark Price is an important part of perpetual futures because it is used to help determine unrealized profit and loss and can influence liquidation calculations. Moving TACUSDT from its temporary LPP mechanism to Binance's standard methodology therefore changes how the contract's reference price will be determined.
Binance said the transition will be gradual rather than an immediate switch. The exchange will use price smoothing during the process to minimize abrupt movements and maintain greater stability while the new calculation takes effect.
Trading and Open Positions Will Not Be Cancelled
Despite the Mark Price adjustment, Binance said the transition will not affect the trading function of the TACUSDT perpetual contract.
Existing open orders will not be canceled, and traders with open positions will not have those positions automatically closed because of the change.
This distinction is important for traders because the announcement concerns the pricing mechanism rather than a suspension of the TACUSDT market. Binance is changing the way the contract's Mark Price is calculated while keeping the trading market operational.
Users can review the exchange's broader perpetual futures trading parameters for information on the parameters that apply to Binance Futures contracts.
TACUSDT Funding Rate Cap Will Increase Sharply
Binance is also changing the maximum funding-rate limits after the LPP period ends.
The capped funding rate will move from +0.005% / -0.005% to +2.000% / -2.000%. The new limits are scheduled to take effect as part of the transition beginning at 06:00 UTC on Sept. 7.
The funding-rate schedule provided by Binance is:
Time (UTC) | Maximum Funding Rate |
|---|
Sept. 7, 04:00 | +0.005% / -0.005% |
Sept. 7, 08:00 | +2.000% / -2.000% |
Sept. 7, 12:00 | +2.000% / -2.000% |
Sept. 7, 16:00 | +2.000% / -2.000% |
Subsequent periods | +2.000% / -2.000% |
The schedule means the 04:00 UTC funding period remains under the existing ±0.005% cap, while the listed periods from 08:00 UTC onward use the new ±2.000% maximum.
Traders can monitor historical payments through Binance's Funding Rate History.
Funding Interval Could Change From Four Hours to One
Binance also outlined a condition that could alter how frequently funding is settled.
The TACUSDT perpetual contract's funding interval can move from every four hours to every one hour when the previous funding-rate settlement reaches the +2.00% or -2.00% limit.
This means the standard funding schedule does not necessarily remain at four-hour intervals under extreme funding conditions. The one-hour interval is tied specifically to the previous funding settlement reaching either side of the new maximum funding-rate cap.
Funding rates are used in perpetual futures to help keep the contract's price aligned with the underlying market. Depending on the direction and size of the funding rate, traders holding long or short positions may pay or receive funding.
Binance Can Adjust TACUSDT Parameters
Binance noted that it retains the ability to change the contract's specifications according to market-risk conditions.
Potential adjustments can include the funding fee, tick size, maximum leverage, initial margin and maintenance margin requirements. Traders should therefore rely on the latest Binance Futures parameters rather than assuming that the terms in the current notice will remain unchanged indefinitely.
The exchange also reserves the right to change the constituents and weightings of the Price Index used in its futures pricing methodology. Binance provides a dedicated page where users can review the latest Price Index constituents and weightings.
For additional contract information, users can consult Binance's Futures Contract Specifications and its perpetual futures trading rules.
What the TACUSDT Update Means for Traders
The Binance TACUSDT update primarily changes the contract's Mark Price mechanism and funding-rate parameters rather than stopping trading.
From 06:00 UTC on Sept. 7, Binance will gradually transition the contract away from Last Price Protection toward its standard Mark Price methodology. The exchange expects the transition to take up to three hours and will use smoothing to reduce sudden price movements.
At the same time, the funding-rate cap will eventually increase from ±0.005% to ±2.00%, while funding could shift from four-hour to one-hour intervals if a previous settlement reaches the new maximum or minimum.
Binance has advised users to refer to its latest trading parameters, funding history, contract specifications and trading rules because futures conditions can change based on market-risk considerations.
