Binance Futures Funding Rate Update
In a recent announcement, Binance revealed significant updates to their funding rate calculation for Binance Futures, set to take effect at 4:01 PM on September 18, 2025, in the UTC+8 time zone.
New Funding Rate Calculation
The revamped funding rate will now be computed using the formula:
Funding Rate (F) = [Premium Index (P) + clamp (Interest Rate – Premium Index (P), 0.05%, -0.05%)] / (8/N)
where N signifies the frequency of funding rate settlements.
Enhanced Mark Price Calculation
Additionally, this update will also enhance the calculation of the mark price, with the adjustment period being shortened from 1 minute to a more responsive 30 seconds. The changes will be implemented for both USDT-Margined and Coin-Margined Perpetual Futures, where the new mark price will be determined as follows:
Mark Price = Median(Price 1, Price 2, Contract Price)
Here, Price 2 will be established by adding a 30-second Moving Average to the Price Index, which is derived by averaging 30 data points collected every second from buy and sell prices before subtracting the price index.
Delivery Futures Adjustment
For Delivery Futures, the adjustment will also apply similarly, using the formula:
Mark Price = Price Index + Moving Average (30-second basis)
This means the average for the moving calculation will utilize the median of the Best Bid and Best Ask prices adjusted for the Price Index over a 30-second interval.
Conclusion
These changes aim to improve the accuracy and responsiveness of pricing in Binance’s futures trading environment, reflecting real-time market conditions more effectively than before.
