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Bybit is rolling out a new feature that will automatically change how often funding rates are settled on its Perpetual Contracts. The feature will start working on October 30, 2025, at 8 a.m. UTC and will be fully active by November 3, 2025, at 6 a.m. UTC.
This update is meant to make trading smoother and more responsive. It allows the system to automatically adjust settlement times based on how the market is moving. If the funding rate of a contract hits its set upper or lower limit during a settlement period, the system will switch to hourly settlements. This helps ensure that rates better reflect market volatility in real time.
For example, if a Perpetual Contract usually settles every four hours, say at 4 a.m., 8 a.m., and 12 p.m. (UTC+8), and the rate reaches its 2% limit at 8 a.m., the next funding settlement will happen an hour later at 9 a.m. But if the rate stays below that limit, such as 1%, the usual schedule will continue.
The system isn’t fixed at hourly settlements forever. Once market conditions calm down, it can switch back to every two, four, or eight hours automatically, without prior notice. These changes happen quickly, usually within about four minutes. So, if a rate hits the limit at 8 a.m., the new frequency will show up by 8:04 a.m. (UTC+8).
However, not all contracts will get this feature right away. It won’t apply initially to major ones like BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, and ETHWUSDT. Bybit said that the automatic adjustment may also be turned off for certain contracts if liquidity or volatility make it unsuitable.
Depending on the trading pair, settlement cycles will continue to follow different time intervals, every 8 hours (12 a.m., 8 a.m., 4 p.m.), every 4 hours (12 a.m., 4 a.m., 8 a.m., 12 p.m., 4 p.m., 8 p.m.), or every 2 hours (every even hour of the day).
Bybit, which is the second-largest crypto exchange in the world by trading volume, added that traders can always check the latest funding rate frequency directly on its platform. This will help them adjust their trading strategies quickly as market conditions shift.