As committed in the post-mortem of 4 September and in the updates of 18 September and 2 October, this is the scheduled 4 November update. It covers two things: where the review with Binance stands, 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.
- 15 September — Binance's written response, supporting account data and a proposed goodwill payment were shared with our team.
- 18 September — 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.
- 24 September — 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 — we published the scheduled update. Binance's further review was pending; no new written position had been received.
- 19 October — Binance indicated it would respond within two weeks.
- 4 November — this update.
On 29 October, Binance confirmed a security breach. The response has not arrived, and we have not received a revised timeline. We will request a status update this week.
What Binance has confirmed, and what remains open
Confirmed by Binance in its written response and summarised in our update of 18 September:
- 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 raised with Binance:
Item | Status |
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 declined to provide the final liquidation report; discussions now focus on the goodwill payment it proposed. |
Subsequent management and realisation of the collateral removed from the account | Binance declined to disclose this data, describing it as an internal operational matter. |
Handling of our 18 August enquiry, which was not referred to the Margin or Portfolio Margin Risk team | Binance confirmed that the enquiry was not referred to its Margin or Portfolio Margin Risk team. We raised this 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. |
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. |
Binance has not provided further information on the other items; discussions now focus on the goodwill payment.
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 has not been accepted as final and has not been declined. The payment terms have not been finalised, and the funds have not been received. 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.
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. 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 December. It will be published regardless of whether there is a result by then. If there is a concrete development 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 |
7.1 In force |
|
|
|
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. Alerts are sent to the team, with telephone escalation for the triggers where it is currently enabled. Binance delisting announcements are already monitored; telephone escalation for these announcements is targeted for November 21, 2026. 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". |
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 Automated comparison live: October 25, 2026 | ✅ Live; automated comparison launched five days behind target. The model uses the exchange's collateral ratios across all accounts. The risk module retrieves Binance's uniMMR every five seconds and compares it automatically with its own calculation; a divergence of 5% or more sends an alert to all strategy managers. |
Per-strategy venue accounts | One strategy carrying another strategy's risk | Original target: October 1, 2026 Revised target: October 20, 2026 Completed: October 20, 2026 | ✅ Done by the revised target; the original target was not met. Strategies now operate on separate venue accounts. Different assets within the same strategy may share an account and its margin pool. For example, BTC DeFi and USDT DeFi operate within the same DeFi strategy and share an account. Separation is therefore between strategies, rather than between every individual asset offering. |
7.2 In progress |
|
|
|
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 Maker Core, revised: November 21, 2026 | ⏳ Partially live; the original targets were not met. DeFi: On Binance, automatic reduction based on uniMMR is working, up to and including full closure of positions. On Hyperliquid, leverage is reduced automatically, and reduction based on Hyperliquid's own margin ratio has been live since 27 October. Maker Core: automatic reduction is not yet live; revised target 21 November. Until launch, positions are reduced by the team on the system's signal. |
Automated monitoring of exchange rule changes | Exchange-side rule changes taking effect before the model is updated | Announcement monitoring: October 20, 2026 Telephone alerts for Binance delisting announcements are scheduled to launch on November 21, 2026. Announcement monitoring will extend to other exchanges, starting with Hyperliquid, will launch on November 27, 2026. | ⏳ Partially live; the 20 October target was not met. On Binance, announcements on network changes and suspensions of deposits and withdrawals are tracked with a call. Binance delisting announcements are already monitored; telephone escalation for these announcements is targeted for November 21, 2026. Hyperliquid and other exchanges are not yet tracked; revised target 27 November. DeFi protocols that publish news only on social media are not tracked automatically. Following an automated alert, the team reviews the rule change, recalculates the model and implements adjustments manually — before the change takes effect where the exchange gives enough notice, otherwise after receipt and review. |
Scheduled engineering checks | Changes in integrations and venue notices | October 31, 2026 Revised (exchange software libraries): November 21, 2026 | ⏳ Partially working; the 31 October target was not met. Already in operation as alerting triggers: Binance announcements, transfer failures, server availability. Updates to exchange software libraries: revised target 21 November. Notifications to the exchange accounts' email, custody-provider changes, threshold checks on operational metrics and a consolidated daily run are not yet covered; no date committed yet. |
7.3 Planned |
|
|
|
Simulation-based stress testing | Failure scenarios untested in advance | December 1, 2026 | ⏳ Planned. |
Verifiable account state | — | December 15, 2026 | ⏳ Planned. |
None of this makes strategy risk disappear — the risk label on each strategy page says what kind of risk that strategy carries. What has changed: Binance's uniMMR is retrieved every five seconds and compared automatically with our own calculation, and a divergence of 5% or more alerts all strategy managers; threshold events are escalated to the team by message, with telephone escalation where currently enabled; automated position reduction operates where described above.
Commitments from the 29 August notifications
PARK Loyalty Rewards 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 same notifications committed six months of VIP group access to affected participants. It has been live since 1 November 2026 and runs until 1 May 2027. For this period, each affected participant's VIP group is raised by one level, fixed as of 1 November: Standard to Select, Select to Preferred, Preferred to Elite, Elite to Private; participants already at Private remain at Private. Affected participants have been notified by email.
The PARK accrual, the VIP group access and any distribution from the Binance review are separate: none of them replaces another.
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 4 November: automated de-risking for Maker Core, telephone escalation for delisting announcements and exchange software library updates (21 November), monitoring of other exchanges (27 November), written regulations for admitting instruments and stress testing (1 December), and verifiable account state (15 December). The next scheduled update: 4 December.
