Why Does Binance Refuse to Explain Its Own Compensation Formula? Transparency Needed

In October 2025, I skilled a liquidation on Binance beneath unusual circumstances: a position with margin ratio was liquidated — which is very irregular. Once I requested the interior logs and calculation breakdown, Binance’s Escalation Staff replied that the company had already offered an “further help fund” however that this fund “doesn't represent compensation or refund.”

⚖️ The Core Contradiction

Here’s the logical drawback:

1. Binance states the system functioned “usually” — which means no technical fault.

2. Then they provide cash labeled as “help.”

3. But they refuse to point out how or why the “help” amount was calculated.

4. And eventually, they declare that the case is “last” and “not compensation.”

If the liquidation was regular, why difficulty any fund at all? If the fund is supposed to help users affected by anomalies, how can they justify not disclosing the standards?

You'll be able to’t declare “we did nothing incorrect” and “we’ll offer you money however gained’t clarify why” on the similar time.

That’s the definition of a non-transparent compensation framework.

???? Why Transparency Matters

Liquidation and compensation mechanisms aren’t just inner instruments — they immediately have an effect on consumer trust, market confidence, and Binance’s credibility as a regulated platform.

By refusing to:

disclose the calculation method for help funds,

present matching-engine or liquidation logs,

or even acknowledge the standards for partial reimbursement,

Binance successfully tells customers:

“Belief our numbers — but you’ll never see them.”

That’s not a clear financial system; that’s a black box with selective generosity.

???? What Users Deserve

Nobody is asking Binance to reveal proprietary code. However users have the proper to:

see the idea for liquidation ratios,

perceive how help funds are determined, and

confirm that inner danger methods are applied persistently.

If Binance can’t disclose even the logic behind “help,” how can anyone affirm equity?

???? Last Thought

Binance’s slogan has all the time been about “freedom of money.” But freedom with out transparency isn’t belief — it’s dependency.

If the company really believes in equity, it ought to welcome transparency, not cover behind corporate phrasing like “help fund — not compensation.”

We don’t want PR statements. We'd like verifiable math.