The second-largest cryptocurrency exchange in the world based on trading volume, Bybit, revealed that its Perpetual Contracts would now include an automated funding rate settlement frequency adjustment functionality. With a complete deployment anticipated by November 3, 2025, at 6 a.m. UTC, the feature goes into effect on October 30, 2025, at 8 a.m. UTC.
By dynamically modifying funding rate settlement frequency in accordance with current market circumstances, the new feature aims to improve trade responsiveness and efficiency. The system will automatically change the settlement frequency to once per hour when the funding rate for a perpetual contract hits its predetermined upper or lower limit during settlement. Funding rates may now more effectively reflect the volatility and existing market dynamics thanks to this modification.
Bybit claims that future adjustments to settlement frequencies and funding rate restrictions will be made automatically and could not need prior notice.
Operational Example
When a Perpetual Contract has upper and lower limits of ±2% and initially settles at 4 a.m., 8 a.m., and 12 p.m. (UTC+8), the system will respond as follows:
- Scenario 1: The frequency of settlements will automatically shift to once per hour if the funding rate hits ±2% at 8 a.m. (UTC+8). The next settlement will take place at 9 a.m. (UTC+8).
- Scenario 2: The frequency stays the same if the funding rate is 1% at 8 a.m. (UTC+8).
Reversion and Adjustment Timing
Depending on market circumstances, the system may abruptly switch back to lengthier intervals—every two, four, or eight hours—after an automated shift to hourly settlements. Usually, the correction takes four minutes or less to complete. For instance, the new frequency will become apparent at 8:04 a.m. (UTC+8) if the rate hits the limit at 8 a.m.
Scope and Exceptions
Bybit pointed out that depending on factors like volatility or liquidity, certain contracts could not have the automatic adjustment option enabled. BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, and ETHWUSDT Perpetual Contracts will not initially be able to use the functionality.
- Funding Rate Settlement Schedule (UTC+8)
- Every 8 hours: 12 a.m., 8 a.m., 4 p.m.
- Every 4 hours: 12 a.m., 4 a.m., 8 a.m., 12 p.m., 4 p.m., 8 p.m.
- Every 2 hours: 12 a.m., 2 a.m., 4 a.m., 6 a.m., 8 a.m., 10 a.m., 12 p.m., 2 p.m., 4 p.m., 6 p.m., 8 p.m., 10 p.m.
According to Bybit, traders may modify their strategy in response to changes in market circumstances by immediately reviewing the most recent settlement frequency on the platform.
