Bybit review: Exchange launches automatic funding rate adjustment for Perpetual Contracts
Bybit, one of the world’s leading cryptocurrency exchanges, has announced the rollout of an automatic funding rate settlement frequency adjustment feature for Perpetual Contracts. The new mechanism, set to launch on October 30, 2025, at 8 a.m. UTC, with full implementation expected by November 3, 2025, is designed to enhance trading precision and better reflect real-time market dynamics.
The update introduces a system that automatically modifies the funding rate settlement frequency whenever a contract’s rate hits its predetermined upper or lower limit. This ensures that settlement intervals are dynamically aligned with market volatility and liquidity conditions — a critical factor for maintaining fair pricing between long and short positions.
For example, if a Perpetual Contract initially settles funding every four hours and its rate reaches the ±2% threshold, the system will automatically increase the frequency to once per hour. The adjustment is executed within approximately four minutes and may later revert to 2-, 4-, or 8-hour intervals depending on subsequent market changes.
How it works and key scenarios
Bybit explained that under the new system, traders will experience seamless automatic transitions without needing manual intervention:
Scenario 1: If the funding rate for a contract reaches 2% or -2% at the 8 a.m. (UTC+8) mark, the next funding event will occur at 9 a.m. (UTC+8).
Scenario 2: If the rate remains within range, such as 1%, the schedule stays unchanged.
The company clarified that open positions and pending orders will be unaffected by these adjustments. However, algorithmic traders using Expert Advisors (EAs) or scripts will need to update their configurations to accommodate the new automatic frequency system.
Contracts and exclusions
The feature applies to most Perpetual Contracts but excludes major pairs such as BTC/USDT, BTC/USDC, BTC/USD, ETH/USDT, ETH/USDC, ETH/USD, ETHBTC/USDT, and ETH/WUSDT. Future updates to settlement frequencies and rate limits will occur dynamically, without the need for additional announcements.
Bybit’s focus on advanced market infrastructure
This latest enhancement underscores Bybit’s ongoing strategy to refine its trading infrastructure for institutional-grade precision and efficiency. Founded in 2018, Bybit has become a global leader in derivatives trading, known for its high-performance matching engine, deep liquidity, and innovative risk management systems.
The automatic funding rate adjustment marks another step in Bybit’s mission to deliver a transparent, adaptable, and technologically advanced trading environment — helping traders stay aligned with fast-changing crypto market conditions.
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