Binance has announced an adjustment to the timing for settling funding fees on certain USDⓈ-M perpetual contracts if specific thresholds are reached, beginning with the TREEUSDT contract. This announcement was made in a press release.
According to Binance, the exchange “constantly reviews its product and service offerings to ensure the best user experience for all users,” reflecting its commitment to adaptability and responsiveness in a rapidly evolving crypto market. The funding rate settlement frequency is described as a critical mechanism to maintain alignment between perpetual futures prices and underlying spot markets, ensuring price stability and fair trading conditions. By incorporating automated adjustments based on market-driven thresholds, Binance aims to optimize user experience while preserving operational integrity.
The press release outlines that if the funding rate of USDⓈ-M perpetual contracts remains at or below the absolute value of 0.002% for 36 consecutive hourly settlement cycles, Binance Futures will revert the funding rate settlement frequency from every one hour to every four hours on the 37th cycle. This threshold-based rule ensures automatic and systematic changes when market conditions are stable. The mechanism is designed to reduce operational costs and complexity during periods of minimal market movement while safeguarding against disruption during volatile times.
Specifically, for the TREEUSDT USDⓈ-M perpetual contract, Binance announced that if its funding rate stays within ±0.002% every hour from 3 a.m. UTC on August 30 through 2 p.m. UTC on August 31, the settlement frequency will change to four-hour intervals starting at 2:15 p.m. UTC on August 31. The first funding payment under this new schedule is set for 4 p.m. UTC on the same day. If any funding cycle during that period exceeds the threshold, however, Zhao said that the hourly settlement frequency will continue—meaning the change only happens during sustained low-volatility conditions.
Binance was founded in 2017 and quickly grew into the world’s largest cryptocurrency exchange by trading volume, as highlighted by its own “About” page which notes that within 180 days of its launch, Binance achieved the top position globally among digital asset exchanges. Today, it serves millions of users worldwide and encompasses a broad ecosystem including services such as Binance Exchange, Binance Wallet, Binance Earn, Binance Pay, Binance Square, Binance Academy, and Binance Research.
