Binance Fires Up Funding Rates: USDT Perpetual Contracts Rev Up!

Get Ready for Action: Funding Rates Kick In Every Four Hours Starting July 22

Binance is cranking up the heat, set to reignite its funding rate settlement model for five sizzling USDT-based perpetual contracts. Mark your calendars because these rates will start blazing every four hours from July 22!

Hear this loud and clear: according to a fresh alert, the minimum and maximum funding rates for these high-octane perpetual contracts are roaring back to life. Binance's current adjustment process is revving up, ready to tweak the funding rate settlement frequency.

Which contracts are feeling the burn? All USDT-based ones, baby! We're talking XTZUSDT, BROCCOLIF3BUSDT, MYXUSDT, MUSDT, and ERAUSDT. Strap in because starting at 12:00 UTC on July 22, the financing rate for these contracts will hit the exchange every four hours. Four of them - BROCCOLIF3BUSDT, MYXUSDT, MUSDT, and ERAUSDT - have their max financing rate locked at a thrilling +2.00% and -2.00%.

But hold up! XTZUSDT is playing it a bit cooler with a max funding rate of +0.75% and -0.75%. It's still in the game, just at a different intensity.

This move? It's all part of Binance's bold new funding rate settlement frequency update. They're not just sitting back; they're ready to periodically adjust those perpetual contracts on Binance Futures based on the wild ride of market conditions.

If the funding rate settlement of these USDT-based perpetual contracts hits the roof, then Binance Futures isn't messing around. They'll shift gears, adjusting the settlement frequency from every eight hours or every four hours to a pulse-pounding every one hour.

What's the deal with funding rates? They're the secret sauce that keeps the balance between long and short positions, making sure the futures and spot markets don't drift apart. These payments are exchanged between traders at set intervals to keep the contract price tight with the spot price of the underlying asset.

Binance Futures isn't just winging it. They're conducting regular check-ups on their perpetual contracts, deciding if the max financing rate needs a tweak or if those intervals need a shake-up, all based on how the market's moving.

And get this - Binance is dominating the Bitcoin trading scene, reportedly holding the lion's share of all Bitcoin trades across crypto exchanges. They're in control, with around 32% of all Bitcoin liquidity on exchanges and deeper liquidity across every trading depth.