KuCoin Futures to Launch Automatic Funding Fee Settlement Interval Adjustment Mechanism (2026-08-17)
08/05/2026, 11:04:00
To further enhance the stability of perpetual contract markets and reduce the impact of funding fee fluctuations on trading experience during extreme market conditions, KuCoin Futures will launch an automatic funding fee settlement interval adjustment mechanism for USDT- and USDC-margined perpetual contracts.
The system will dynamically adjust the funding fee settlement frequency based on the actual settled funding fee rate, allowing funding fees to better reflect market supply and demand conditions.
Effective Time: After August 17, 2026, 08:00 (UTC)
I. Automatic Adjustment Rules for Funding Fee Settlement Interval
Automatic Adjustment to Hourly Settlement
Applicable Contracts: USDT- and USDC-margined perpetual contracts
Check Time: Each funding fee settlement time
Trigger Conditions:
If, at the actual funding fee settlement time, the funding fee rate of a contract:
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Is greater than or equal to the funding fee upper limit; or
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Is less than or equal to the funding fee lower limit;
The system will automatically adjust the funding fee settlement interval of the contract to hourly settlement, effective from the start of the next funding fee period.
If the contract is already using an hourly settlement interval, no adjustment will be made.
Example:
Assume the BTCUSDT perpetual contract currently has an 8-hour funding fee settlement interval, with a funding fee upper and lower limit of +0.3% and -0.3%.
If the actual settled funding fee rate reaches +0.3% or -0.3% at 16:00 (UTC) on August 3, 2026, the system will automatically adjust the funding fee settlement interval to 1 hour starting from the next settlement period, i.e., 17:00 (UTC) on August 3, 2026.
This automatic adjustment will not require a separate announcement.
II. Funding Fee Settlement Interval Recovery Mechanism
When market conditions stabilize, the system will automatically evaluate whether to restore the funding fee settlement interval.
Applicable Contracts: USDT- and USDC-margined perpetual contracts
Check Time: Each funding fee settlement time
Trigger Conditions:
For contracts currently using hourly settlement, if the funding fee rate meets the following condition for 36 consecutive funding fee settlement periods (1 hour each):
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Absolute value of funding fee rate ≤ 0.002%
The system will restore the funding fee settlement interval from 1 hour to 4 hours, effective from the start of the 37th settlement period.
This automatic recovery will not require a separate announcement.
Example:
If the ETHUSDT perpetual contract is currently using a 1-hour funding fee settlement interval, and the absolute value of the funding fee rate remains below or equal to 0.002% for 36 consecutive settlement periods, the system will automatically restore the settlement interval to 4 hours starting from the 37th period.
If the absolute value of the funding fee rate exceeds 0.002% during this period, the consecutive count will be reset.
III. Notes
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Adjustments to the funding fee settlement interval only affect the settlement frequency and will not change the funding fee calculation rules, funding fee limits, or users’ positions.
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This mechanism only applies to automatic settlement interval adjustments triggered by the existing funding fee upper and lower limits. If KuCoin Futures adjusts the funding fee upper or lower limits, a separate announcement will be published.
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In extreme market conditions or special risk events, KuCoin Futures may implement manual adjustments based on market conditions and will publish relevant announcements in advance.
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Automatic adjustments and recovery mechanisms will be executed by the system based on market conditions without separate announcements.
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For adjustments outside the scope of the automatic adjustment mechanism, KuCoin Futures will publish separate announcements.
Risk Warning:
Investing in cryptocurrency is akin to being a venture capital investor. The cryptocurrency market is available worldwide 24 x 7 for trading with no market close or open times. Please do your own risk assessment when deciding how to invest in cryptocurrency and blockchain technology. KuCoin attempts to screen all tokens before they come to market. However, even with the best due diligence, there are still risks when investing. KuCoin is not liable for investment gains or losses.
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