- By dynamically modifying the funding rate settlement frequency in accordance with prevailing market conditions, the new feature aims to improve trading responsiveness and efficiency.
- With full implementation expected by November 3, 2025, at 06:00 UTC, the feature will take effect on October 30, 2025, at 08:00 UTC.
The second largest cryptocurrency exchange in the world based on trading volume, Village piecerevealed that its perpetual contracts would now include an automatic funding rate adjustment frequency adjustment functionality. With full implementation expected by November 3, 2025, at 06:00 UTC, the feature will take effect on October 30, 2025, at 08:00 UTC.
By dynamically modifying the funding rate settlement frequency in accordance with prevailing market conditions, the new feature aims to improve trading responsiveness and efficiency. The system will automatically change the settlement frequency to once per hour when the funding rate of a perpetual contract reaches its predetermined upper or lower limit during settlement. Funding rates can now more effectively reflect volatility and existing market dynamics thanks to this modification.
Bybit claims that future adjustments to settlement rates and funding rate restrictions will be made automatically and may not require advance notice.
Operational example
When a perpetual contract has upper and lower limits of ±2% and is initially settled at 04:00, 08:00 and 12:00 (UTC+8), the system will respond as follows:
- Scenario 1: The frequency of settlements will automatically change to once per hour if the funding rate reaches ±2% at 8 (UTC+8). The next settlement will take place at 9 (UTC+8).
- Scenario 2: The frequency remains the same if the funding rate is 1% at 8 (UTC+8).
Return and adjustment time
Depending on market conditions, the system may suddenly switch back to longer intervals – every two, four or eight hours – after an automatic shift to hourly billing. Typically, the fix takes four minutes or less to complete. For example, the new frequency will become apparent at 8:04 AM (UTC+8) if the speed reaches the limit at 8
Scope and Exclusions
Bybit pointed out that depending on factors such as volatility or liquidity, some contracts could not have the automatic adjustment enabled. BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT and ETHWUSDT Perpetual Contracts will not be able to use the feature initially.
- Settlement schedule for financing interest (UTC+8)
- Every 8 hours: 12:00, 8:00, 16:00
- Every four hours: 12:00, 4:00, 8:00, 12:00, 16:00, 20:00
- Every two hours: 12:00, 2:00, 4:00, 6:00, 8:00, 10:00, 12:00, 14:00, 16:00, 18:00, 20:00, 22:00
According to Bybit, traders can change their strategy in response to changes in market conditions by instantly reviewing the latest settlement frequency on the platform.
