Binance Adjusts Funding Rate Settlements For ALPACAUSDT, FLMUSDT Contracts

Binance, a leading cryptocurrency exchange, has announced adjustments to the funding rate settlement frequencies for two of its USDT-margined perpetual contracts. Effective April 25, 2025, at 16:00 (UTC+8), the ALPACAUSDT Quarterly Perpetual Contract will change from a settlement frequency of every 2 hours to every 1 hour. Similarly, the FLMUSDT Quarterly Perpetual Contract will shift from a settlement frequency of every 4 hours to every 2 hours.

These changes are significant as they will impact how often traders need to account for funding rate payments. The funding rate is a mechanism used in perpetual contracts to anchor the contract price to the spot price. By adjusting the settlement frequency, Binance aims to provide a more responsive and efficient trading environment for these specific contracts.

For traders holding positions in ALPACAUSDT and FLMUSDT, the more frequent settlement will mean that they will need to manage their funding payments more regularly. This could potentially affect their trading strategies and risk management practices. Traders who are long on these contracts will need to be prepared for more frequent funding rate payments, while those who are short may benefit from more frequent settlements if the funding rate is negative.

The adjustment in settlement frequency is likely a response to market conditions and user feedback. More frequent settlements can help in reducing the risk of large funding rate swings, which can be beneficial for both traders and the overall stability of the market. However, it also means that traders need to be more vigilant in monitoring their positions and managing their funding payments.

Overall, these changes by Binance reflect the exchange's commitment to improving its trading products and responding to the evolving needs of its users. By adjusting the funding rate settlement frequencies, Binance aims to create a more dynamic and responsive trading environment for its users, ultimately enhancing the overall trading experience on the platform.