KuCoin Futures Funding Rate Upgrades Plan
10/18/2023, 12:05:00
Dear KuCoin Futures Users,
In order to improve the user trading experience, KuCoin Futures has upgraded the funding rate calculation, the major changes are shown below:
Funding Rate = Clamp(Moving Average(( (Best Bid Price + Best Ask Price) / 2 - Index Price) / Index Price + Interest), A, B).
The current USDT-margined daily interest rate is 0.06%, while the coin-margined daily interest rate is 0.03%.
The Moving Average operates on the total data of the current cycle, calculated once per minute, with a total of 8*60=480 calculations each cycle. If within a cycle, the calculated value is the Predicted Funding Rate; if at the end of a cycle, the calculated value is the Funding Rate used for settlement.
The specific parameters for A and B above are as follows (subject to margin rates, and adjustments might be made by officials under extreme market conditions):
Funding Rate Cap = (Initial Margin IM - Maintenance Margin MM) × 0.75
Funding Rate Floor = (Initial Margin IM - Maintenance Margin MM) × (-0.75)
For instance: if the Contract Initial Margin is 1%, and the Maintenance Margin is 0.5%, the maximum funding rate will be (1%-0.5%) ×75% = 0.375%. If the calculated Funding Rate F' > 0.375%, then the final Funding Rate F = 0.375%.
Click to view more trading opportunities under the new funding rate
Quick Start Tutorial for Futures Trading:
Risk Warning: Futures trading is a high-risk activity with the potential for huge gains and huge losses. Previous gains do not indicate future returns. Severe price fluctuations may result in the forced liquidation of your entire margin balance. This information should not be regarded as investment advice from KuCoin. All trading is done at your own discretion and your own risk. KuCoin is not liable for any losses resulting from Futures trading.
Thank you for your support!
The KuCoin Team
Find The Next Crypto Gem On KuCoin!