Bybit, recognized as the world’s second-largest cryptocurrency exchange by trading volume, has announced the launch of a new automatic funding rate settlement frequency adjustment feature for its Perpetual Contracts. This feature is set to become effective on October 30, 2025, at 8 a.m. UTC, with a full rollout anticipated by November 3, 2025, at 6 a.m. UTC. The announcement was made here.

The newly introduced functionality aims to enhance trading efficiency and responsiveness by dynamically adjusting the funding rate settlement frequencies in accordance with real-time market conditions. When a Perpetual Contract’s funding rate hits its preset upper or lower limit during settlement, the system will automatically adjust the settlement frequency to once per hour. This adjustment is designed to ensure that funding rates more accurately reflect prevailing market dynamics and volatility.

Operational Dynamics and Examples

Bybit has provided operational examples to illustrate the new system. For instance, if a Perpetual Contract initially settles every four hours—at 4 a.m., 8 a.m., and 12 p.m. (UTC+8)—and has upper and lower limits of ±2%, the system will adjust as follows:

Scenario 1: 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).

Scenario 2: If the funding rate is 1% at 8 a.m. (UTC+8), the frequency remains unchanged.

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

Bybit has noted that the automatic adjustment feature may be disabled for certain contracts based on liquidity or volatility considerations. Initially, this feature will not apply to BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, or ETHWUSDT Perpetual Contracts.

The funding rate settlement schedule is structured as follows (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.

Traders are encouraged to review the latest settlement frequency directly on the platform to adapt their strategies as market conditions evolve.

Why This Matters: Impact, Industry Trends & Expert Insights

Bybit has announced the launch of a dynamic settlement frequency feature for its perpetual contracts, aimed at improving trading efficiency and responsiveness to market conditions.

Recent industry reports indicate that perpetual contracts continue to dominate the crypto derivatives market, comprising over 90% of the trading volume. This aligns with Bybit’s initiative to enhance its perpetual contracts with dynamic settlement features, reflecting the market’s demand for more adaptive trading tools.

As per insights from Business Insider, experts appreciate Bybit’s launch of features like dynamic settlement frequency, which are seen as enhancing trading flexibility and user experience. This supports Bybit’s commitment to providing traders with tools that adapt to real market conditions.

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