- Feature dynamically adjusts funding frequency based on volatility.
- Implemented when funding rate hits ยฑ2%.
- Affects BTC, ETH, and USDT contracts.
Bybit has introduced an automatic funding rate adjustment for its perpetual contracts, automatically altering settlement frequency based on reaching ยฑ2% funding thresholds. This mechanism affects BTC, ETH, and other USDT pairs, addressing extreme rate deviations.
Bybit has announced the launch of an automatic funding rate adjustment feature for its perpetual contracts, effective from October 30, 2025. This update targets the dynamic management of funding settlement frequency amid market volatility.
Bybitโs new automated system aims to stabilize volatility impacts on perpetual contracts, a move closely watched by traders. The system modifies settlement frequency depending on funding rate deviations, offering a strategic edge amid heightened market activity.
Bybit introduces a new system to manage funding rate extremes by adjusting the settlement frequency when deviations reach ยฑ2%. This proactive measure operates hourly until conditions stabilize, optimizing contract management amid market fluctuations. According to the Bybit Official Announcement, โIf the funding rate reaches 2% or -2% at 8AM (UTC+8), the system automatically changes the settlement frequency to once per hour. The next day, if the funding rate returns to within ยฑ2%, settlement frequency reverts to once every 8 hours.โ
Bybit, a prominent crypto derivatives exchange, is launching this adjustment to control funding rate volatility. The system affects perpetual contract holders, notably for assets like BTC and ETH, and strategically aims to balance market conditions dynamically.
Bybitโs automatic adjustment mechanism impacts traders dealing with BTC, ETH, and other USDT pairs. This adaptation further tunes finance management during intense trading days, reflecting a responsive operational stance amid heightened conditions.
The introduction of continuous funding adjustments underscores the potential financial impacts on liquidity and volatility management. Bybitโs innovation is expected to influence trader behaviors, balancing costs and risks dynamically during volatile market periods.
Experts anticipate the technological advances in Bybitโs approach may set a new standard for crypto derivatives trading. Historical precedents indicate such adaptive strategies may align perpetual contracts closer to spot prices, enhancing overall market stabilization.
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