#Binance Futures to Update Funding Rate Settlement Frequency for USDⓈ-M Perpetual Contracts
Binance News | Apr 25
Verified Binance official account
AI Summary:
Starting May 2, 2025, at 08:00 UTC, Binance Futures will adjust how frequently funding rates are settled on USDⓈ-M Perpetual Contracts, aiming to better align with market conditions and improve the trading experience.
Key Update:
Funding rate settlements will now occur every one hour (instead of every 8 or 4 hours) if the previous rate hits the cap or floor.
Example: For the BTCUSDT contract, if the funding rate reaches +0.3% or -0.3%, the settlement frequency will switch to hourly.
This change will take effect about 15 minutes after the rate hits the cap or floor.
What Are Funding Rates?
They help align perpetual contract prices with the spot market.
Funding payments are made between traders — long pay shorts when the rate is positive, and vice versa.
Rates vary with market volatility — they’re typically low in calm markets and spike during volatile periods.
Tip: Keep an eye on your positions and collateral to avoid margin calls or liquidations.
Exceptions:
FLMUSDT will continue to settle funding every 2 hours.
VOXELUSDT and ALPACAUSDT will remain at a 1-hour frequency, but this may change later.
You can view real-time funding rate data and historical trends directly on Binance or through their API.
This change underscores Binance’s ongoing efforts to enhance service quality and adapt to evolving market dynamics.
