Bybit Enhances Trading Experience with Automatic Funding Rate Adjustment for Perpetual Contracts

This article provides an easy-to-read summary and insights based on the latest Bybit announcement.

In its ongoing effort to improve the trading experience, Bybit is set to introduce an automatic funding rate settlement frequency adjustment feature for Perpetual Contracts. This update is expected to roll out fully by Nov 3, 2025, 6AM UTC, after its initial launch on Oct 30, 2025, 8AM UTC.

The new feature will allow the system to automatically adjust the settlement frequency to an hourly rate when a Perpetual Contract’s funding rate reaches its preset upper or lower limit. This shift is aimed at better reflecting real-time market conditions.

Bybit will dynamically adjust future funding rate limits and settlement frequencies as needed, without the need for separate announcements.

How it Works: A Feature Example

Consider a Perpetual Contract with an initial funding rate settlement frequency of every 4 hours. If the preset upper and lower limit for this contract is ±2%, the system will adjust the settlement frequency based on the following scenarios:

• Scenario 1: If the funding rate reaches 2% or -2% at 8AM (UTC+8), the settlement frequency will automatically change to once per hour. The next settlement will then occur at 9AM (UTC+8).
• Scenario 2: If the funding rate is only 1% at 8AM (UTC+8), the frequency remains unchanged.

Once the frequency has been adjusted to an hourly rate, it may revert to once every 2, 4, or 8 hours depending on market conditions. Traders are advised to stay updated with the latest settlement frequency by checking here so they can adjust their trading strategies accordingly.

Additional Information

The automatic adjustment feature will be completed within about 4 minutes when a contract’s funding rate hits its upper or lower limit during settlement. For instance, if the rate hits the limit at 8AM (UTC+8), the new frequency will be visible by 8:04AM (UTC+8).

Please note that Bybit may disable the automatic adjustment feature for specific contracts depending on market conditions. This feature currently does not apply to BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT or ETHWUSDT Perpetual Contracts.

If you have any questions or require assistance, feel free to reach out to Bybit’s Customer Support by submitting a ticket via this form.

Bybit appreciates your continued support.

Insights

This new feature introduced by Bybit is a significant step forward in their efforts to provide a more dynamic and responsive trading environment. By automatically adjusting the funding rate settlement frequency, Bybit can ensure that their contracts more accurately reflect real-time market conditions, which is crucial in the highly volatile world of cryptocurrency trading.

While this feature will provide more flexibility and potentially better trading opportunities, it also places a greater demand on traders to stay updated with the changes. Hence, traders should regularly check the latest settlement frequency and adjust their strategies accordingly.