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