What happened?

Bybit will roll out an automatic funding-rate settlement frequency adjustment for its Perpetual Contracts, effective Oct 30, 2025, 08:00 UTC, with full coverage by Nov 3, 2025, 06:00 UTC. When a contract’s funding rate hits its preset upper or lower limit during a scheduled settlement, the system will switch to hourly settlements so the funding mechanism can track fast-moving markets more precisely. Reversions back to 2/4/8-hour cadences can occur automatically as conditions normalize. Bybit also notes it may update limits and frequencies automatically in the future, without separate notices.

Investor Takeaway

For high-volatility periods, funding will calibrate faster (hourly) to better align perp pricing with spot. Expect funding P&L to realize more frequently—good for basis traders, but it tightens the window for late adjustments.

Why does it matter for traders?

Funding is the bridge that nudges perpetual prices toward spot. In volatile markets, slow settlement intervals can let deviations persist, creating noisy signals and delayed carry costs. Dynamic settlements aim to:

  • Improve price discovery: Hourly settlements compress the time mismatch between price and carry.
  • Reduce extreme drifts: Faster cadence discourages one-sided build-ups when perps detach from spot.
  • Sharpen hedging: Basis, cash-and-carry, and cross-venue arbitrage strategies get fresher funding inputs.
  • Expose timing risk: Funding debits/credits crystallize more often, impacting cash flow and margin.

How will the system behave in practice?

Operational example (UTC+8 schedule shown): Assume a contract normally settles every 4 hours at 04:00, 08:00, 12:00 with funding limits of ±2%.

  • Scenario 1: At 08:00 the rate hits ±2% → settlement frequency flips to hourly. Next settlement is 09:00, then hourly thereafter while limits are being tapped.
  • Scenario 2: At 08:00 the rate reads 1% → frequency unchanged.

Reversion: After switching to hourly, the system may revert to 2/4/8-hour intervals as conditions stabilize; changes typically surface on the interface within about four minutes (e.g., hit at 08:00 → visible by 08:04, UTC+8). Traders should check each contract’s live cadence on the Bybit interface before running time-sensitive strategies.

Which markets are included—and which are not?

Bybit can disable auto-adjustments for certain contracts due to liquidity/volatility profiles. At launch, the feature does not apply to:

BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, ETHWUSDT

  • Every 8 hours: 00:00, 08:00, 16:00
  • Every 4 hours: 00:00, 04:00, 08:00, 12:00, 16:00, 20:00
  • Every 2 hours: 00:00, 02:00, 04:00, 06:00, 08:00, 10:00, 12:00, 14:00, 16:00, 18:00, 20:00, 22:00

Base funding schedules (UTC+8): Once a limit is touched at settlement, the hourly cadence overrides until the system deems conditions suitable to step back out.

Investor Takeaway

Expect more frequent, smaller funding transfers in hot markets. If you run carry or market-making books, re-check P&L buckets, risk buffers, and auto-deleveraging assumptions to reflect hourly events.

What’s next—and how should strategies adapt?

Funding sensitivity: With hourly toggles, funding spikes are curtailed faster but realized sooner. Tighten cash-management and consider automating top-ups to avoid margin drift around surprise frequency flips.

Basis trades: Hourly settlements improve tracking but can compress net carry in crowded legs. Monitor limit utilization and switch-over probability around macro catalysts and open interest surges.

Vol-responsive routing: For cross-venue strategies, incorporate Bybit’s dynamic cadence into routing rules so your model isn’t assuming stale 8/4/2-hour windows during stress.

Exception mapping: Because flagship BTC/ETH pairs are excluded initially, don’t assume uniform behavior across your book. Tag instruments by cadence policy to avoid funding P&L surprises.

Change management: Bybit indicates future tweaks to limits/frequencies may be automatic and announcement-light. Treat the UI/API as your source of truth and add alerts when cadence changes.