DUBAI, UAE, Oct. 29, 2025 /PRNewswire/ — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, announced the launch of an automatic funding rate settlement frequency adjustment feature for its Perpetual Contracts. The feature becomes effective October 30, 2025, at 8 a.m. UTC, with full rollout expected by November 3, 2025, at 6 a.m. UTC.
Enhancing Trading Efficiency with Dynamic Adjustments
The new functionality is designed to enhance trading efficiency and responsiveness by dynamically adjusting funding rate settlement frequencies in line with real-time market conditions. When a Perpetual Contract’s funding rate reaches its preset upper or lower limit during settlement, the system will automatically shift the settlement frequency to once per hour. This adjustment allows funding rates to more accurately reflect prevailing market dynamics and volatility.
According to Bybit, future updates to funding rate limits and settlement frequencies will be implemented automatically and may occur without separate announcements.
Operational Example of Dynamic Settlement
If a Perpetual Contract initially settles every four hours—at 4 a.m., 8 a.m., and 12 p.m. (UTC+8)—and carries upper and lower limits of ±2%, the system will behave as follows:
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Scenario 1: Limit Reached
If the funding rate reaches ±2% at 8 a.m. (UTC+8), the settlement frequency will automatically change to once per hour, with the next settlement occurring at 9 a.m. (UTC+8).
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Scenario 2: Limit Not Reached
If the funding rate is 1% at 8 a.m. (UTC+8), the frequency remains unchanged.
Reversion and Adjustment Timing
Following an automatic change to hourly settlements, the system may revert to longer intervals—every two, four, or eight hours—depending on market conditions, without prior notice. The adjustment is typically completed within about four minutes. For example, if the rate reaches the limit at 8 a.m. (UTC+8), the new frequency will be visible by 8:04 a.m. (UTC+8).
Scope and Exceptions to the Feature
Bybit noted that the automatic adjustment feature may be disabled for certain contracts based on liquidity or volatility considerations. The feature will not initially apply to BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, or ETHWUSDT Perpetual Contracts.
Funding Rate Settlement Schedule (UTC+8)
The following are examples of settlement schedules, subject to dynamic adjustments:
- •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.
Bybit stated that traders can review the latest settlement frequency directly on the platform to adapt their strategies as market conditions evolve.
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.