2026-01-02 10:24:39

The exchange has just announced an adjustment to the perpetual contract settlement cycle. In simple terms, starting from 8:00 PM Beijing time on January 2nd next year, if the funding rate for USDT-M perpetual contracts remains within 0.025% (absolute value) for 16 consecutive hours, then at the 17th cycle, the settlement frequency will change from once every hour to once every four hours.

This adjustment may seem like a technical detail, but it actually impacts traders' costs and risk management. The lower the funding rate, the less cost pressure on both longs and shorts, indicating a more balanced market. When the rate remains low over multiple cycles, extending the settlement cycle effectively reduces the cost associated with settlement frequency. For traders holding positions, this means the interval between fee deductions is lengthened, but the overall rate level remains unchanged. This design might be intended to simplify settlement frequency when the market is calm.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

6 Likes

Reward
6
6
Repost
Share

Comment

0/400

ForkTongue

· 9h ago

Oh no, they changed the settlement cycle again. It seems like exchanges just love to do these tricks. Settlement every four hours? Is it really to save costs or just to scam us? They change the cycle when the funding rate is low, it feels like they're relieving pressure on the big players. Wait, does this mean the interval between our liquidation is getting longer? Is this for real? Next year we’ll have to adapt to new rules again.

View OriginalReply0

On-ChainDiver

· 9h ago

Hmm, this move is about reducing costs. When the funding rate is low, they extend the settlement cycle. It seems like the exchange is trying to retain users.

View OriginalReply0

OnChain_Detective

· 9h ago

ngl this smells like they're trying to smooth out the volatility metrics... let me parse the pattern here - 16 hour window at 0.025% threshold before shifting to 4h settlement? that's oddly specific, almost looks designed to mask certain fee structures during low activity periods 👀

Reply0

OnchainUndercover

· 9h ago

Wait, if the funding rate drops below 0.025%, it switches to settlement every four hours? Is this a way to indirectly reduce fees, or is the exchange just trying to be lazy…

View OriginalReply0

NeverVoteOnDAO

· 9h ago

Honestly, this adjustment is quite friendly to someone like me who prefers to hold and relax. Being less exploited multiple times is always a good thing.

View OriginalReply0

zkProofInThePudding

· 9h ago

Oh no, it's about the fee rate again. It's a bit complicated. Does extending the settlement cycle really benefit us? Or is the exchange secretly profiting? When the funding rate is so low, it takes 16 hours to trigger? It doesn't seem that easy. Market balancing slows down the settlement; why didn't I think of that logic? Then we need to monitor this 0.025% carefully, or we'll be passively taken advantage of again. Just knowing that the fee rate remains unchanged is useless; extending the interval still results in being cut.

View OriginalReply0