According to Binance's official announcement, effective from 2025-05-02 08:00 (UTC), Binance Futures will modify the funding rate settlement frequency for USDⓈ-M Perpetual Contracts. This adjustment aims to enhance user experience by aligning the settlement frequency with market conditions.
Adjustment Details
- The funding rate settlement frequency will change from every eight or four hours to every one hour if the previous funding rate settlement reaches the funding rate cap/floor.
- For instance, the USDⓈ-M BTCUSDT perpetual contract, with a funding rate cap/floor of +0.3% / -0.3%, will see its settlement frequency adjusted to every one hour if the rate hits these limits.
- The adjustment will be implemented approximately 15 minutes after the previous funding rate settlement reaches the cap/floor.
Understanding Funding Rates
- Funding rates are crucial for aligning the price of perpetual contracts with the underlying asset's spot market price.
- These rates are exchanged directly between traders, with long-position holders paying short-position holders when the rate is positive, and vice versa.
- The rates are influenced by market conditions, typically lower during low volatility and potentially reaching maximum levels during high volatility.
- Users are advised to monitor their positions and collateral closely to avoid margin calls and liquidations.
Exceptions and Additional Information
- The USDⓈ-M FLMUSDT perpetual contract will maintain a funding rate settlement frequency of every two hours until further notice.
- USDⓈ-M VOXELUSDT and ALPACAUSDT contracts will continue with a one-hour frequency, subject to future changes.
- Users can access real-time funding rate information and history through Binance's platform or via API endpoints.
This adjustment reflects Binance's commitment to optimizing its services in response to market dynamics, ensuring a seamless trading experience for its users. Further announcements will be made if additional changes are implemented.
