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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.
