Dear Toobiters,
To continuously enhance user experience, Toobit will adjust the funding rate settlement frequency for USDⓈ-M Perpetual Contracts.
Effective from 2025-05-02 08:00 (UTC), if the previous funding rate settlement of a USDⓈ-M Perpetual Contracts the funding rate cap or floor, Toobit will change the funding rate settlement frequency from every eight hours or every four hours to every one hour.
Case Example: Taking the USDT-M BTCUSDT Perpetual Contract as an example:
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The funding rate cap and floor for the USDT-M BTCUSDT Perpetual Contract are set at +0.5% and -0.5%, respectively.
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By default, the funding rate settlement occurs every eight hours.
Situation 1: If the funding rate for the USDT-M BTCUSDT Perpetual Contract reaches -0.5% at 08:00 (UTC) on 2025-04-25, the settlement frequency will be adjusted from every eight hours to every one hour.
The new funding rate settlement frequency will take effect starting from 09:00 (UTC) on 2025-04-25.
After the adjustment, the funding rate for the USDT-M BTCUSDT Perpetual Contract will be settled every one hour.
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Time
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Maximum Funding Rate
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2025-04-25 08:00 （UTC）
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+2.00% / -2.00%
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2025-04-25 09:00 （UTC）
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+2.00% / -2.00%
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2025-04-25 10:00（UTC）
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+2.00% / -2.00%
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2025-04-25 11:00（UTC）
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+2.00% / -2.00%
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......
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Situation 2: If the funding rate for the USDT-M BTCUSDT Perpetual Contract reaches -0.5% at 07:45 (UTC) on 2025-04-25, but at the official settlement time (08:00 UTC) the funding rate is -0.45%, no adjustment to the funding rate settlement frequency will be made.
Only funding rates that reach the funding rate cap or floor at the settlement time will trigger an adjustment.
About Funding Rates
Funding rate ensures the transaction price of perpetual swaps closing to the price of the underlying asset. The funding rate of each period is calculated from the data of the previous period and has been determined at the beginning of the current period. It will not be changed during the period and will be applied in funding calculation at the end of the current period. Meanwhile, in this period, the estimated funding rate for the next period is calculated every minute, and the last calculated estimated funding rate will be used as the rate for the next period.
Only users who hold positions at the settlement have to pay or receive funding; users whose positions have been closed before the settlement are not required to pay or receive funding.
At settlement, whether a user should receive or pay funding depends on the funding rate of the current period and the positions of the user. If the funding rate is positive, users with long positions should pay funding to users with short positions; if the funding rate is negative, users with short positions should pay funding to users with long positions.
In extreme market conditions, funding rates may exceed the Maintenance Margin Ratio. As funding rates are deducted directly from users’ collateral, users are strongly advised to monitor their positions and available collateral closely to avoid margin calls and liquidations.
Funding payments with a settlement frequency of every eight hours occur at 00:00 (UTC), 08:00 (UTC), and 16:00 (UTC), while funding payments with a settlement frequency of every four hours occur at 00:00 (UTC), 04:00 (UTC), 08:00 (UTC), 12:00 (UTC), 16:00 (UTC) and 20:00 (UTC).
Users may visit the Real-Time Funding Rate and Funding Rate History pages to view the latest funding interval and funding rate cap/floor. API users may query USDⓈ-M futures funding rate information via GET /api/v1/futures/fundingRate
Notes:
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The adjustment will be completed within approximately 15 minutes after the previous funding rate settlement reaches the funding rate cap/floor. For example, when the funding rate of a contract reaches the funding rate cap/floor at 08:00 (UTC) funding rate settlement, users will see the adjustment on the funding rate settlement frequency latest by 08:15 (UTC).
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No announcement will be made in the event that an adjustment is taking place due to the previous funding rate settlement reaching the funding rate cap/floor. Users may visit the Real-Time Funding Rate and Funding Rate History pages to view the latest funding interval and funding rate cap/floor. API users may query USDⓈ-M futures funding rate information via GET /api/v1/futures/fundingRate.
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The funding rate settlement frequency will not be reverted to every eight hours or every four hours after the funding rate settlement frequency has been adjusted to every one hour.
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A separate announcement will be made if Toobit Futures decides to increase the funding rate settlement frequency of USDⓈ-M Perpetual Contracts to every one hour when the previous funding rate settlement does not reach the funding rate cap/floor and to revert the funding rate settlement frequency of every one hour to eight hours or four hours.
For More Information:
We appreciate your understanding and continued support. For any questions, please contact our customer support team.
Toobit Team
2025-04-28
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Toobit reserves the right to modify or cancel this announcement at any time and for any reason without prior notice.
Risk Warning: The prices of digital assets may fluctuate significantly. The value of your investment may increase or decrease, and you may even lose the entire amount invested. You are solely responsible for your investment decisions, and Toobit is not liable for any losses that may occur due to the use of margin trading. This information should not be considered financial or investment advice. Please refer to our Terms of Use and Risk Disclosure for more details.