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Bybit Introduces Dynamic Funding Rate System for Perpetual Contracts

Quick Breakdown 

  • Bybit launches Dynamic Settlement Frequency for Perpetual Contracts, improving real-time funding rate adjustments.
  • The system automatically changes settlement intervals during high volatility, from standard hours to once per hour.
  • Integration with UBS’s uMint tokenized fund marks a new bridge between crypto and traditional finance.

Bybit has unveiled a new Dynamic Settlement Frequency System for its Perpetual Contracts. The update, set to go live on October 30, 2025, aims to make funding rate adjustments more responsive to real-time market conditions. A full rollout will be completed by November 3, 2025.

Enhancing real-time market responsiveness

The new system automatically modifies funding rate settlement frequencies based on market volatility. When a contract’s funding rate hits its preset upper or lower limit, the system switches the settlement frequency to once per hour, allowing rates to better mirror live market shifts.

For instance, if a contract that typically settles every four hours reaches its ±2% rate limit at 8 a.m. (UTC+8), the next settlement will occur at 9 a.m. This dynamic shift ensures more accurate reflection of market momentum while mitigating funding rate distortions during extreme volatility.

Flexible adjustments and scope

Once market conditions stabilize, the system may revert to longer settlement intervals every two, four, or eight hours without advance notice. The change process is completed within minutes, typically around four minutes after a rate limit is triggered.

Bybit clarified that the feature may be disabled for certain contracts depending on liquidity or volatility factors. At launch, the system will not apply to BTC and ETH perpetual contracts, including BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, and ETHUSD pairs.

Traders will be able to track the latest settlement frequency directly on Bybit’s trading interface, enabling them to adjust strategies as conditions evolve.

In another move reflecting the growing convergence of traditional finance and crypto markets, Bybit recently announced the integration of the uMint tokenized fund, a digital asset product launched by global banking giant UBS. This partnership underscores Bybit’s ongoing efforts to bring regulated, institutional-grade investment products to the crypto ecosystem.

 

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