Binance to Increase Funding Rate Settlement Frequency to Every 2 Hours
Binance has announced that it will be adjusting the funding rate settlement frequency for its T U inverse perpetual contracts. This change will come into effect on April 18, 2025, at 22:00 Beijing time. The funding rate, which is essential for calculating the costs of holding these perpetual contracts, will shift from an eight-hour settlement period to a more frequent two-hour interval.
This decision by Binance is part of its broader strategy to improve market efficiency and enhance liquidity for traders who use these leveraged financial instruments. By increasing the frequency of funding rate settlements, Binance aims to provide traders with more timely updates on their funding costs. This could potentially reduce the impact of intermittent funding fees, making the trading experience smoother and more predictable for users.
As the cryptocurrency market continues to evolve, Binance's proactive approach to adjusting its settlement frequencies reflects its commitment to adapting to the changing needs of its user base. This move is expected to benefit traders by offering more regular and transparent updates on their funding costs, thereby improving overall market efficiency and liquidity.
