Bybit, the second-largest cryptocurrency exchange, introduces a Settlement Frequency System for Perpetual Contracts for its derivatives platform. This new feature gets effective starting October 30, 2025, at 8 a.m. UTC. It aims to increase trading efficiency and allow funding rates to more accurately reflect real-time market dynamics and volatility.
The full rollout of the new system is anticipated by November 3, 2025, at 6 a.m. UTC.
How the System Works
The objective of the new system is its ability to automatically adjust the funding rate settlement frequency based on existing market conditions.
When a perpetual contract’s funding rate reaches a preset upper or lower limit (for example, +-$2%), the system will automatically increase the settlement frequency to once per hour. If a contract that normally settles every four hours hits its +-$2% limit at 8 a.m. UTC+8, its settlement frequency will switch to hourly, with the next settlement occurring at 9 a.m. UTC+8.
If the funding rate remains within the preset limits, the standard frequency persists. The system is programmed to revert to longer intervals (every two, four, or eight hours) as market conditions normalize.
Increased transparency and flexibility
Bybit’s move is a step toward making its perpetual contracts more responsive to shifts in the crypto market. The exchange stated that future updates to funding rate limits and settlement frequencies may also be implemented automatically.
Traders are advised to monitor the platform directly for the latest settlement frequency to adapt their trading strategies.
The Funding Rate Settlement Schedule for Bybit’s Perpetual Contracts, presented in UTC+8, offers three standard intervals: settlements occur every 8 hours at 12 a.m., 8 a.m., and 4 p.m.; every 4 hours at 12 a.m., 4 a.m., 8 a.m., 12 p.m., 4 p.m., and 8 p.m.; and every 2 hours, with settlements occurring hourly between 12 a.m. and 10 p.m.Exceptions within the feature
While the feature will be applied broadly, Bybit has signaled that the automatic adjustment may get disabled for certain contracts based on liquidity or volatility considerations.
The following perpetual contracts will not initially apply the new dynamic settlement feature:
BTC-based contracts: BTCUSDT, BTCUSDC, BTCUSD
ETH-based contracts: ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, ETHWUSDT
This launch reinforces Bybit’s commitment to providing an advanced derivatives trading experience for its global community of users.
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