Adjusted Funding Rate Frequency and Limits for Select USDT Perpetual Contracts

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In a strategic move to enhance risk management and improve trading efficiency, HTX (formerly Huobi) has announced key updates to the funding rate mechanisms for select USDT-margined perpetual contracts. Effective June 18, 2025, at 10:30 (GMT+8), changes will be implemented to both the funding rate calculation frequency and rate caps across several popular cryptocurrency pairs.

These adjustments reflect a growing industry trend toward more responsive and balanced perpetual contract frameworks—designed to stabilize markets during periods of volatility while offering traders greater predictability in funding costs.

Updated Funding Rate Calculation Frequency

To ensure tighter alignment with real-time market dynamics, HTX will increase the funding rate settlement frequency for the following USDT perpetual contracts:

Before the Update

Previously, funding fees were settled every 8 hours, with calculations occurring at:

This three-times-daily model is common across many exchanges but can lead to delayed responses to sudden price shifts.

After the Update

Starting June 18, 2025, these contracts will shift to a 4-hour settlement cycle, resulting in six funding intervals per day:

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This refinement allows for more granular adjustments, reducing the potential for large, unexpected funding payments when markets trend sharply over extended periods.

Revised Funding Rate Caps

Alongside the frequency update, HTX has adjusted the upper and lower limits of funding rates for specific contracts. These caps prevent extreme funding costs during high-volatility events and promote healthier market equilibrium.

BIGTIMEUSDT

A reduction in maximum funding rate aims to curb excessive leverage incentives and speculative behavior around this trending meme-inspired asset.

JSTUSDT

Unlike other pairs, JSTUSDT sees an increase in its cap—indicating higher expected volatility or stronger demand for long/short imbalances, warranting broader adjustment ranges.

AAVEUSDT

As a major DeFi bluechip, AAVE benefits from tighter funding bands, aligning it with more mature assets and reducing unnecessary cost burdens on positional traders.

UNIUSDT

This further narrowing reflects UNI’s relatively stable price action and lower historical funding extremes—making it more attractive for conservative swing traders.

Why These Changes Matter

Perpetual contracts rely on funding rates to keep futures prices anchored to spot values. When long and short positions become unbalanced, funding fees act as a market correction tool—paying traders on the less-popular side to incentivize balance.

However, outdated or overly aggressive funding mechanisms can backfire:

HTX’s dual adjustment addresses both concerns by:

  1. Improving responsiveness through more frequent recalculations.
  2. Reducing extreme exposure via smarter rate ceilings tailored to individual asset profiles.

These refinements are particularly valuable for algorithmic traders, arbitrageurs, and yield-focused strategies that depend on predictable funding environments.

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These terms align with common search queries related to futures trading conditions, platform-specific updates, and risk-adjusted trading techniques.

Frequently Asked Questions

What is a funding rate in perpetual contracts?

The funding rate is a periodic payment exchanged between long and short position holders to maintain parity between perpetual contract prices and the underlying asset’s spot price. It ensures the contract doesn’t deviate significantly from fair market value.

Why is HTX changing the settlement frequency?

More frequent settlements (every 4 hours instead of 8) allow faster corrections to imbalances between long and short positions, reducing sudden spikes in funding costs and improving overall market stability.

Does a lower funding cap mean lower risk?

Generally, yes. Lower caps limit how much traders must pay or receive in funding fees, which reduces the risk of unexpected losses due to extreme market moves or prolonged trends.

How will these changes affect my open positions?

If you hold any of the listed contracts past the implementation date, your funding payments will follow the new schedule and limits. Ensure your strategy accounts for increased settlement frequency and revised caps.

Are other exchanges making similar updates?

Yes. Leading platforms like OKX, Binance, and Bybit regularly review and adjust their funding mechanisms based on asset volatility and trading behavior. HTX’s move aligns with broader industry best practices.

Can I still profit from funding rates under the new system?

Absolutely. Traders who understand market sentiment can still take advantage of positive or negative funding environments—especially with more frequent settlements offering additional entry/exit opportunities.

Final Thoughts

HTX's decision to refine its perpetual contract framework demonstrates a commitment to evolving with market needs. By increasing settlement frequency and fine-tuning rate limits based on individual asset behavior, the exchange enhances fairness, transparency, and trader confidence.

Whether you're a day trader leveraging short-term funding differentials or a long-term investor managing portfolio hedges, staying informed about such platform-level changes is crucial for maintaining an edge in today’s fast-moving digital asset landscape.

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