This is a general announcement. Products and services referred to here may not be available in your region.
Fellow Binancians,
Binance constantly reviews its product and service offerings to ensure the best user experience for all users. Effective from 2025-05-02 08:00 (UTC), Binance Futures will implement an adjustment process to the funding rate settlement frequency of USDⓈ-M Perpetual Contracts. If the previous funding rate settlement of USDⓈ-M Perpetual Contracts reaches the funding rate cap/floor, Binance Futures will adjust the settlement frequency from every eight hours or every four hours to every one hour.
Taking USDⓈ-M BTCUSDT perpetual contract as an example, the funding rate cap/floor of USDⓈ-M BTCUSDT perpetual contract is +0.3% / -0.3% and the default funding rate settlement frequency of USDⓈ-M BTCUSDT perpetual contract is every eight hours.
Situation 1:
USDⓈ-M BTCUSDT perpetual contract funding rate at 2025-04-22 at 08:00 (UTC) reaches -0.3%, the next funding rate settlement will be adjusted from every eight hours to every one hour. The new funding rate settlement frequency will start from 2025-04-22 at 09:00 (UTC).
The new funding rate settlement frequency for USDⓈ-M BTCUSDT perpetual contract will be as follows:
Situation 2:
USDⓈ-M BTCUSDT perpetual contract funding rate at 2025-04-22 at 07:45 (UTC) reaches -0.3%. However, at the funding rate settlement time at 2025-04-22 08:00 (UTC), the funding rate is -0.25%. No adjustment will be made on funding rate settlement frequency because the funding rate did not reach the funding rate cap/floor at the funding rate settlement time.
Funding rates help converge the price of the perpetual contract and the price of the underlying asset on the spot market. Funding rates are transferred directly between traders. Binance only facilitates the exchange of funding amounts between long-position and short-position holders.
If the funding rate is positive, long-position holders will pay funding amounts to short-position holders, and vice versa. Funding amounts are calculated based on the nominal value of positions and funding rates.
Funding rates may vary depending on market conditions. The rates are generally much lower during times of low volatility, and may hit the maximum levels only during high volatility.
In extreme market conditions, funding rates may exceed the Maintenance Margin Ratio. As funding rates are deducted directly from users’ collateral, users are strongly advised to monitor their positions and available collateral closely to avoid margin calls and liquidations.
Funding payments with a settlement frequency of every eight hours occur at 00:00 (UTC), 08:00 (UTC), and 16:00 (UTC), while funding payments with a settlement frequency of every four hours occur at 00:00 (UTC), 04:00 (UTC), 08:00 (UTC), 12:00 (UTC), 16:00 (UTC) and 20:00 (UTC).
Users may visit the Real-Time Funding Rate and Funding Rate History pages to view the latest funding interval and funding rate cap/floor. API users may query USDⓈ-M futures funding rate information via the newly added endpoint: GET /fapi/v1/fundingInfo.
Notes:
The adjustment will be completed within approximately 15 minutes after the previous funding rate settlement reaches the funding rate cap/floor. For example, when the funding rate of a contract reaches the funding rate cap/floor at 08:00 (UTC) funding rate settlement, users will see the adjustment on the funding rate settlement frequency latest by 08:15 (UTC).
No announcement will be made in the event that an adjustment is taking place due to the previous funding rate settlement reaching the funding rate cap/floor . Users may visit the Real-Time Funding Rate and Funding Rate History pages to view the latest funding interval and funding rate Cap/Floor. API users may query USDⓈ-M futures funding rate information via the newly added endpoint: GET /fapi/v1/fundingInfo.
The funding rate settlement frequency will not be reverted to every eight hours or every four hours after the funding rate settlement frequency has been adjusted to every one hour.
A separate announcement will be made if Binance Futures decides to increase the funding rate settlement frequency of USDⓈ-M Perpetual Contracts to every one hour when the previous funding rate settlement does not reach the funding rate cap/floor and to revert the funding rate settlement frequency of every one hour to eight hours or four hours.
USDⓈ-M FLMUSDT perpetual contract with funding rate settlement frequency of every two hours will remain until further notice. A separate announcement will be made if Binance Futures decides to resume the funding rate settlement frequency from every two hours to every four hours.
USDⓈ-M VOXELUSDT and ALPACAUSDT perpetual contracts with funding rate settlement frequency of every one hour will remain.
Please note that these may be subjected to changes in the future.
Note: There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Thank you for your support!
Binance Team
2025-04-25
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Binance reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reasons without prior notice.
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