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Important Updates on Funding Rate Formula and Mark Price Calculation of Futures Contracts (2025-09-18)

Published on 2025-09-16 09:00

This is a general announcement. Products and services referred to here may not be available in your region.

Fellow Binancians,

Binance constantly reviews its product and service offerings to ensure the best user experience for all users. Effective from 2025-09-18 08:01 (UTC), the funding rate formula will be updated as follows:

Before the Update

After the Update

Funding Rate (F)
= Average Premium Index (P) + clamp (interest rate per funding interval - Premium Index (P), 0.05%, -0.05%)

Notes: 

The interest rate is fixed at 0.03% daily by default except for BNBUSDT and ETHBTC perpetual contracts, for which the interest rate is set to 0%. When the funding interval is every 8 hours, the interest rate per funding interval will be 0.01%. When the funding interval is every 1 hour, the interest rate per funding interval will be 0.00125%.

Funding Rate (F)
= [Average Premium Index (P) + clamp (interest rate - Premium Index (P), 0.05%, -0.05%) ] / (8/N)


Where
interest rate = 0.01%, except BNBUSDT and ETHBTC perpetual contracts, for which the interest rate is set to 0%.

N = funding interval

Example:

PUMPUSDT’s funding interval is every 4 hours.


PUMPUSDT’s funding rate formula will be as follows:


Funding Rate (F)

= [Average Premium Index (P) + clamp (interest rate - Premium Index (P), 0.05%, -0.05%) ]/ (8/4)

= [Average Premium Index (P) + clamp (0.01% - Premium Index (P), 0.05%, -0.05%) ] / 2

In addition, effective from 2025-09-18 08:01 (UTC), Binance Futures will make adjustments to mark price calculations by updating the basis of Price 2 from 1-minute basis to 30 seconds basis, with details as follows:

Futures Contracts

Before the Adjustment

After the Adjustment

USDⓈ-M and COIN-M Perpetual Contracts

Mark Price = Median (Price 1, Price 2, Contract Price)

Where Price 2 = Price Index + Moving Average (1-Minute Basis)

Note: The Moving Average (1-Minute Basis) is calculated as the average of 60 data points over a 1-minute period.

The basis is calculated every second by taking the average of the bid and ask prices and then subtracting the Price Index.

Mark Price = Median (Price 1, Price 2, Contract Price)

Where Price 2 = Price Index + Moving Average (30 Seconds Basis)

Note: The Moving Average (30 Seconds Basis) is calculated as the average of 30 data points over a 30 seconds period.

The basis is calculated every second by taking the average of the bid and ask prices and then subtracting the Price Index.

USDⓈ-M and COIN-M Delivery Contracts

Mark Price = Price Index + Moving Average (1-Minute Basis)

Note: Moving Average (1-Minute Basis) = Moving Average ((Bid1 + Ask1) / 2 - Price Index), calculated each second minute in a 1-minute interval.

The basis is calculated every second by taking the average of the bid and ask prices and then subtracting the Price Index.

Mark Price = Price Index + Moving Average (30 Seconds Basis)

Note: Moving Average (30 Seconds Basis) = Moving Average ((Bid1 + Ask1) / 2 - Price Index), calculated each second minute in a 30 seconds interval.

The basis is calculated every second by taking the average of the bid and ask prices and then subtracting the Price Index.

Notes

  • Users may visit the Real-Time Funding Rate and Funding Rate History pages to view the latest funding interval and historical funding rates. API users may query USDⓈ-M futures funding rate information via the newly added endpoint: GET /fapi/v1/fundingInfo. 

  • There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.

For More Information:

Thank you for your support!

Binance Team

2025-09-16

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Binance reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reasons without prior notice.

Disclaimer: In compliance with MiCA requirements, from 2024-06-30, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here. 

Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Futures trading, in particular, is subject to high market risk and price volatility. You may be called upon at short notice to make additional margin deposits or interest payments. If the required margin deposits or interest payments are not made within the prescribed time, your collateral may be liquidated without your consent. Moreover, you will remain liable for any resulting deficit in your account and interest charged on your account. All of your margin balance may be liquidated in the event of adverse price movement. Past performance is not a reliable predictor of future performance. Before trading, you should make an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the risks and potential benefits. Consult your own advisers, where appropriate. This information should not be construed as financial or investment advice. To learn more about how to protect yourself, visit our Responsible Trading page. For more information, see our Terms of Use and Risk Warning.

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