To improve market stability and enhance user trading experience, Huobi will adjust the funding rate settlement frequency and upper/lower limits for certain USDT-margined perpetual contracts. These updates take effect on June 18, 2025, at 10:30 AM (GMT+8).
Changes to Funding Rate Settlement Frequency
The following perpetual contracts will transition from an 8-hour to a 4-hour funding rate settlement interval:
- BBUSDT
- IOUUSDT
- SONICUSDT
- BIGTIMEUSDT
- SWARMSUSDT
- USTCUSDT
- HMSTRUSDT
- WUSDT
- JSTUSDT
Previous Schedule (Every 8 Hours)
Settlements occurred daily at:
- 00:00 (UTC+8)
- 08:00 (UTC+8)
- 16:00 (UTC+8)
New Schedule (Every 4 Hours)
Settlements will now occur daily at:
- 00:00 (UTC+8)
- 04:00 (UTC+8)
- 08:00 (UTC+8)
- 12:00 (UTC+8)
- 16:00 (UTC+8)
- 20:00 (UTC+8)
Updates to Funding Rate Caps and Floors
Adjustments have been made to the maximum and minimum funding rates for several contracts:
- BIGTIMEUSDT: Changed from ±3% to ±2%
- JSTUSDT: Changed from ±1.5% to ±2%
- AAVEUSDT: Changed from ±1.5% to ±0.75%
- UNIUSDT: Changed from ±0.75% to ±0.45%
These modifications are intended to better reflect current market conditions and reduce extreme funding cost scenarios.
Why These Changes Matter
Funding rates play a critical role in perpetual swap markets. They help align the contract price with the spot market price. More frequent settlements can lead to tighter tracking of the underlying asset, while adjusted caps can decrease volatility in funding costs.
Traders should be aware of how these changes might affect their positions, especially those involving long-term holdings or high leverage.
For those interested in deeper analysis or real-time tracking of such metrics, you can explore advanced funding rate tools to better inform your trading strategies.
Frequently Asked Questions
Q1: What is a funding rate in perpetual contracts?
A: A funding rate is a periodic payment exchanged between long and short traders to ensure the contract price stays close to the spot price. It can be positive or negative.
Q2: How will the increased settlement frequency affect my trades?
A: With settlements occurring every 4 hours instead of 8, funding payments will be transferred more frequently. This may reduce sharp payment swings but requires closer monitoring of open positions.
Q3: Why are the funding rate caps being lowered for some tokens?
A: Lower caps limit the maximum funding rate paid or received per period, which can make holding positions less costly during high-volatility periods and improve overall trading conditions.
Q4: Will these changes affect my existing positions?
A: Yes, all open positions in the affected contracts will be subject to the new funding rate intervals and limits from the effective date onward.
Q5: Where can I see the updated funding rates and schedules?
A: Most trading platforms display current and historical funding rates directly in the contract details or market data sections.
Q6: Are other exchanges making similar adjustments?
A: Funding rate parameters are unique to each exchange and are periodically reviewed. It’s common for platforms to adjust these settings in response to market dynamics.
Huobi has implemented these changes to foster a more stable and efficient trading environment. Users are encouraged to review their strategies and risk management approaches accordingly.