Binance said it will apply its latest Last Price Protection (LPP) mechanism to the TACUSDT USDⓈ-Margined perpetual contract starting at 19:00 on Aug. 27, 2026, Beijing time, after TAC (TAC Protocol) showed abnormal price divergence across spot markets on multiple centralized exchanges. According to the official announcement, the exchange will introduce the LPP mechanism gradually through a mark price smoothing mode during the switch in an effort to reduce the impact of sudden price swings and keep pricing more stable through the transition. Binance said the LPP period for the contract will end once TAC prices across multiple exchanges move back into alignment and a stable index price becomes available from the spot market, as determined by Binance. The exchange added that it will issue a separate notice before the contract moves from LPP back to the standard mark price calculation, which it described as mark price = Median (price 1, price 2, contract price). The length of the transition will depend on price volatility and the stability of the index price.
Binance will apply its latest Last Price Protection, or LPP, mechanism to the TACUSDT USDⓈ-Margined perpetual contract at 19:00 on Aug. 27, 2026, Beijing time, according to an official announcement cited by BlockBeats. The move follows abnormal price divergence for TAC (TAC Protocol) across spot markets on multiple centralized exchanges.
Binance said that during the switch to the LPP mechanism, it will roll out the change gradually through a mark price smoothing mode. The exchange said the arrangement is intended to reduce the effect of sudden price moves and support price stability during the transition period.
According to the announcement, the LPP period will end once TAC prices across multiple exchanges become consistent and a stable index price can be obtained from the spot market, as determined by Binance.
Binance also said it will publish another announcement when the TACUSDT perpetual contract is ready to move from LPP back to the standard mark price calculation. The standard formula cited in the notice is: mark price = Median (price 1, price 2, contract price). The duration of that transition will depend on price volatility and the stability of the index price.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
