As committed in the post-mortem of 4 September and in the update of 18 September, this is the scheduled 2 October update. It covers two things: where the review with Binance stands — against the questions we said were open — and the status of every item listed in "What we changed — and what is still in progress", against the dates we committed to.
1. The review with Binance
Where it has got to
- 18 August — before the liquidation, we asked Binance how collateral rates apply under Portfolio Margin Pro, specifically for borrowed USDT used to buy spot assets hedged through futures. Binance referred us to its published uniMMR methodology and did not expressly address the collateral treatment in the example.
- 23 August, 21:11 UTC — the account's uniMMR fell below 1.05 and the exchange liquidated its positions.
- 28 August — we filed a formal Information Request with Binance, including a request for the exchange-issued liquidation report.
- 31 August — Binance confirmed the questions were under review and asked for additional time given the scope of the request.
- 4 September — the post-mortem was published, with the review listed as open.
- Sep 15, 2026 — Binance’s written response, supporting account data and a proposed goodwill payment were shared with our team.
- Sep 18, 2026 — we published an update on Binance’s response and the questions that remained open. Discussions were continuing, and Binance had requested additional time for a further comprehensive review.
- Sep 24, 2026 — we asked Binance to consider increasing its goodwill contribution and to confirm the terms, documentation requirements, payment arrangements and expected timing of the contribution already offered.
- 2 October — this update. Binance's further review is still pending; no new written position has been received since our last update.
What Binance has confirmed, and what remains open
Confirmed by Binance in its written response and summarised in our update of Sep 18, 2026:
- The Liquidation Snapshot was generated from Binance's official account records and shows the account immediately before liquidation.
- Liquidation was triggered when uniMMR fell below the 105% threshold, under the Portfolio Margin Pro terms.
- Borrowed USDT was recognised as a liability in full, while the purchased assets counted as collateral at a reduced value; the futures hedge did not remove that reduction.
- Our 18 August question was not referred to Binance's Margin or Portfolio Margin Risk team.
Status of the items we said on 18 September were still open:
Open item (as published 18 September) | Status — 2 October |
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Financial reconciliation: valuation of collateral, liquidation execution, fees, remaining liabilities | Partially reconciled. Binance’s data allows us to reproduce the aggregate calculations in the supplied workbook, including the reported residual PM Loan balance. This does not yet establish the account’s final financial outcome. Outstanding work includes matching liquidation debits to the underlying records and positions; confirming the final status of assets and liabilities, including the treatment of frozen BTC; and completing the reconciliation of the fee information provided. Binance has not issued the final liquidation report we requested; we continue to seek it. |
Subsequent management and realisation of the collateral removed from the account — Binance declined to disclose, citing internal operational matters | Binance's position has not changed: the exchange declines to disclose this data and describes it as an internal operational matter. Our request for official documents remains in force. |
Handling of our 18 August enquiry, which was not referred to the Margin Risk team | Binance confirmed that the enquiry was not referred to its margin-risk team. We pointed this out in the negotiations. This does not change our conclusions about our own model, published in the post-mortem. |
How these margin mechanics were considered when Binance reviewed the increase in our USDT borrowing limit | Binance answered in general terms: the decision was made based on the state of the account at that time. A more detailed explanation of whether the described mechanism was taken into account is not yet available. |
Terms and payment arrangements for the proposed goodwill payment | Under discussion. The proposal has not been accepted as final and has not been declined. On 24 September we asked Binance to consider increasing the amount and to confirm the terms, documentation requirements, payment arrangements and expected timing of the contribution already offered. A response is still pending. The payment terms have not been finalised, and the funds have not been received. |
The goodwill payment and our position
Binance has proposed a goodwill payment to help offset the losses. That proposal does not constitute an admission of liability by Binance, and we do not present it as one. It remains under discussion, and the funds have not been received.
Where this stands today: we have asked Binance to increase its goodwill contribution while also seeking confirmation of the terms and payment arrangements for the contribution already offered. Discussions continue, and an increase is not assured. We will publish the detailed allocation methodology, the final amount to be distributed and the payment timing once the arrangements are finalised. The distribution principle already published remains unchanged.
Distribution — unchanged
Any funds received from Binance as a result of this process will be distributed among participants in Maker Core, BTC LP (now BTC DeFi), ETH LP (now ETH Maker Core) and ETH DeFi in proportion to their positions on 23 August, whether or not they remain on the platform — as set out in section 5 of the post-mortem and repeated on 18 September. This applies to everyone with a 23 August balance in those strategies, including users who have since withdrawn.
Distribution will be automatic: every eligible user will be notified by email after the fact, and the amount will appear in Transaction History. There is nothing to apply for or claim: treat any message asking you to "claim" or "register" for a return as a scam.
Next update on the review
4 November. It will be published regardless of whether there is a result by then. If anything concrete lands earlier, we will publish it earlier.
2. Status of the changes
The 23 August liquidation had one root, described in the post-mortem: our risk model counted collateral at full value, while the exchange counted it with haircuts inside a unified margin pool. Section 7 of the post-mortem lists thirteen changes that address specific parts of that failure. The table below covers all thirteen items, grouped by their current implementation status, and compares progress with the previously published dates or timing commitments. Missed targets are identified, with revised dates where available.
Change as listed in section 7 | What it addresses | Target Date | Status |
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7.1 In force |
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Standing de-risking rule for approving venue instruments for a strategy | New instruments entering without a risk review | In force since August 28, 2026 (manual, interim); automation in 7.2 Written regulations: December 1, 2026 | ✅ In force, for now manually, as published. When uniMMR reaches the threshold, the system calls the team and the position is reduced; in Maker Core this is for now done manually, on the system's signal. Before a new position or a new instrument, we calculate how the margin indicators will change, and the team double-checks the calculation. If the margin mechanics are not confirmed, we do not open or increase the position. Written regulations for admitting instruments are scheduled. |
Expanded strategy disclosures | Insufficient detail on strategy mechanics and specific risks | September 2, 2026 | ✅ Done. Each strategy's page describes the mechanics, the use of collateral and borrowed funds (where they apply), and the key risks. |
Around-the-clock margin and position alerting | Threshold events with no one notified in time | Original target / monitoring live: September 11, 2026 Calls live: September 16, 2026 | ✅ Live. The risk module monitors uniMMR, leverage and operational errors; monitoring launched on target. It runs on several independent servers. Calls are live; they launched five days behind the original target. Any trigger produces both a message and a call: the system calls the on-duty members of the strategies team one by one until someone answers. Triggers: a decline in uniMMR; leverage above the limit; a transfer failure; an automatic position reduction; a server failure; Binance notifications about delisting, maintenance, network upgrades and API changes. |
Risk-level methodology update | Levels said how much, not what kind | September 11, 2026 | ✅ Done. The Low / Medium / High levels have been replaced with risk labels: Market-Neutral, On-Chain, Cross-Venue, Market-Exposed. A risk type is not a rating and not a list of all risks. |
Strategy redefinition | — | September 11, 2026 | ✅ Done. BTC LP has been renamed BTC DeFi, ETH LP — ETH Maker Core. The descriptions have been expanded: where the funds are placed, how collateral and borrowed funds are used, what the risks are. Holders have been notified. |
Dedicated risk-management function | Clear allocation of risk-management responsibilities | Implemented by October 2, 2026 | ✅ Implemented. Risk-management responsibilities are allocated across strategy management, operational oversight and engineering. Automated monitoring and escalation are live. Further automation of position reduction is tracked separately under “Automated de-risking”. |
7.2 In progress |
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Daily verification against the exchange's calculation | The model counting differently from the exchange | Model implemented: August 25, 2026 Across all accounts: September 11, 2026 Automated comparison target: October 20, 2026 | ⏳ Partially implemented. The model uses the exchange’s collateral ratios across all accounts. The risk module retrieves Binance’s uniMMR once per minute and independently calculates the indicator in real time. Following each Binance update, the exchange’s figure is used; between updates, the module uses its own calculation to monitor changes in margin risk. Automated comparison of the two figures has not yet been implemented. Position-reduction measures are described under “Automated de-risking”. |
Automated de-risking | Dependence on a manual decision in a fast-moving event | Original target: September 25, 2026 Maker Core — dollars and altcoins: October 5, 2026 Maker Core — BTC: October 12, 2026 Hyperliquid margin-ratio reduction: October 7, 2026 | ⏳ Partially live; the original target was not met. Maker Core. There is no automatic reduction yet.
Until launch, positions are reduced by the team on the system's signal.
DeFi: On Binance, automatic reduction based on uniMMR is working, up to and including full closure of positions. On Hyperliquid, leverage is reduced automatically. Reduction based on Hyperliquid's own margin ratio is pending.
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Per-strategy venue accounts | One strategy carrying another strategy's risk | Original target: October 1, 2026 Revised target: October 20, 2026 | ⏳ In progress; the original target was not met. Done: Maker Core's BTC and altcoin assets are operating on dedicated sub-accounts. Remaining: to separate Maker Core's dollar positions into their own accounts; the fund transfers are being automated and tested. After this, margin will be calculated per account for each strategy and asset group, while within one group it will remain shared. |
Automated monitoring of exchange rule changes | Exchange-side rule changes taking effect before the model is updated | Announcement monitoring: October 20, 2026 | ⏳ Partially live. On Binance, three categories of announcements are tracked with a call: delistings, maintenance (suspension of deposits and withdrawals, network upgrades) and API changes. The next step is general Binance news, including margin announcements, and announcements from other exchanges, starting with Hyperliquid. DeFi protocols that publish news only on social media are not tracked automatically. Following an automated alert, the team reviews the rule changes, recalculates the model and implements adjustments manually. Where the exchange provides advance notice and sufficient preparation time, adjustments are made before the changes take effect. Otherwise, adjustments follow receipt and review of the information. Our proprietary model-adaptation module is currently being tested. |
Scheduled engineering checks | Changes in integrations and venue notices | October 31, 2026 | ⏳ Partially working. Already in operation as alerting triggers: Binance announcements and API changes, transfer failures, server availability. Not yet covered:
- updates to exchange software libraries;
- notifications to the exchange accounts' email;
- a consolidated daily run. |
7.3 Planned |
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Simulation-based stress testing | Failure scenarios untested in advance | December 1, 2026 | ⏳ Planned. |
Verifiable account state | — | To be announced | Remains on the roadmap; no date committed yet. |
None of this makes strategy risk disappear — the risk label on each strategy page says what kind of risk that strategy carries. Binance’s uniMMR is now retrieved once per minute, while our own calculation monitors margin risk between exchange updates. Alerts escalate threshold events to the team; automated position reduction operates where described above.
Commitments from the 29 August notifications
Separately from section 7, the individual notifications sent on 29 August committed PARK Loyalty Rewards to affected users. These were credited on 8 September to all affected users. The accrual is final — it will not be revoked or reduced, and there are no retention conditions attached. It is visible on the Vesting page and in Transaction History (8 September, "Correction"). The PARK accrual and any distribution from the Binance review are separate: neither replaces the other.
3. Closing
The post-mortem page remains the central public record of our incident-remediation programme and progress updates. It will continue to be updated as the remaining items close, including those with targets after 2 October. The next scheduled update: 4 November.
