Important Notice: Optimization of the Perpetual Futures Funding Rate Calculation Mechanism(01-09)
Dear KuCoin Futures Users,
To further enhance the continuity and market adaptability of the perpetual futures funding rate mechanism, the platform will optimize the MA (Moving Average) calculation cycle logic used in funding rate calculations. Please review the following important updates carefully.
1. Adjustment Time
The optimization will be completed during the following time window: January 9, 2026, 08:00 – 09:00 (UTC)
2. Details of the Adjustment
2.1 Core Optimization of the MA Calculation Cycle
The funding rate calculation formula is as follows:
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Funding Rate = Clamp(MA [{(BestBidPrice + BestAskPrice) / 2 - Index Price} / Index Price + Interest], a, b)
Where:
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Funding Rate Upper Limit (a) = (Minimum Initial Margin - Minimum Maintenance Margin) * 0.75
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Funding Rate Lower Limit (b) = (Minimum Initial Margin - Minimum Maintenance Margin) * -0.75
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Interest:
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Interest Rate = Daily Interest Rate / (24 / Settlement Interval)
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USDT-Margined Contracts: daily interest rate of 0.03%
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Coin-Margined Contracts: daily interest rate of 0.03%
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Please note:
Not all trading pairs strictly apply the above formula to determine funding rate limits.
Different contracts may adopt customized funding rate caps based on their risk parameters and market characteristics. The actual upper and lower limits displayed on the real-time funding rate page for each trading pair shall prevail.
2.2 Comparison Before and After the Optimization (with Example)
Before:
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The MA used in funding rate calculations is based on data within the current settlement cycle;
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Data accumulation starts from the beginning of the cycle, sampled once per minute;
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MA data continues to accumulate until the settlement cycle ends.
After:
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The MA calculation is changed from a fixed cycle to a sliding window;
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The calculation window is based on the current time and looks backward over the corresponding cycle length;
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All valid data within the sliding window participates in the calculation, without relying on a fixed cycle start point.
This optimization improves the responsiveness of funding rates to real-time market conditions.
Example:
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Before optimization, if the funding rate cycle is 4 hours and the current time is 16:10, the MA calculation still accumulates data starting from 16:00 of the same day;
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After optimization, regardless of the current time (e.g., 10:37 or 16:01), the MA calculation window always slides backward from the current moment, using historical data over the relevant cycle length (depending on the settlement cycle of the trading pair), without being restricted by fixed time boundaries.
3. Important References
3.1 Trading Pairs with Previously Updated Algorithms
Some trading pairs have already undergone separate funding rate calculation upgrades. These trading pairs are not affected by the current optimization and will continue to use the updated algorithm.
Please refer to the following announcement for details:
3.2 Funding Rate Algorithm Help Center Update
You may refer to the relevant Help Center article for detailed explanations of the funding rate mechanism.
Special Notice:
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The Help Center content will be updated to reflect the new calculation logic after January 9, 08:00 (UTC);
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Prior to the update, the page will continue to display the previous version of the algorithm.
4. Risk Disclaimer
Perpetual futures trading involves high risk. Adjustments to the funding rate mechanism may affect funding costs. Users are advised to closely monitor funding rate changes, manage positions and leverage prudently, and adjust trading strategies accordingly.
KuCoin Futures will continue to optimize its contract trading mechanisms to provide users with a safer and more efficient trading experience.
Thanks for your understanding and support!
The KuCoin Futures Team
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
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