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KuCoin shifts some perpetual funding to hourly once limits hit

KuCoin said the contract stays on hourly settlement only after 36 consecutive one-hour periods meet a tight absolute funding-rate threshold, then returns to four-hour timing on period 37.

Reported · Written up by our desk · Market Structure

KuCoin activated a new rule for certain USDT- and USDC-margined perpetual contracts after 08:00 UTC on Aug. 17. The change moves funding settlement to an hourly schedule once a contract-specific funding cap or floor is reached, with the adjustment starting in the next funding period and occurring without a separate announcement.

The mechanism is based on the scheduled funding rate. If the funding rate is at or above the contract's upper limit, or at or below its lower limit, KuCoin switches the contract to a one-hour interval unless it is already settling hourly, while keeping its funding calculations, funding limits, and traders' positions unchanged.

KuCoin said moving to hourly settlement can increase how often funding is debited or credited, but the cumulative cost still depends on the realized funding rates, the position side and size, and how long the position remains open. The hourly phase requires 36 consecutive one-hour settlements where the absolute funding rate is no greater than 0.002%, and any reading above that threshold resets the count.

Once a contract completes those 36 qualifying periods, KuCoin said the schedule moves back to four-hour settlement starting with the 37th period, again without separate notice. In an example tied to a Bitcoin perpetual, KuCoin noted plus and minus 0.3% as upper and lower limits, and it showed that at 20:15 UTC on Aug. 17 one XBT USDT M contract was not yet in the hourly mechanism because its live funding rate fell within those bounds.

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