KuCoin Updates Perpetual Contract Funding Settlement Rules

KuCoin has activated a new rule for its USDT and USDC margined perpetual contracts. When a contract hits its specific funding cap or floor, the settlement interval automatically switches to hourly. This change applies immediately to the next funding period without extra notice from the exchange.

The system is designed to trigger whenever the funding rate reaches the upper or lower limit of a specific contract. Once this happens, the contract stays on an hourly schedule until it maintains a rate no greater than 0.002 percent for 36 consecutive hours. If the rate exceeds that threshold at any point during that time, the 36 hour count resets and the hourly settlements continue.

While this change alters the frequency of payments, KuCoin notes that the funding formulas and contract limits remain the same. The total cost for traders still depends on the realized rates and their position size. Because these adjustments happen automatically based on market conditions, traders should pay close attention to their active positions to avoid unexpected balance changes.

This update is part of the exchange's broader effort to manage high volatility in its derivatives market. Traders who rely on standard funding intervals should be aware that their positions may move to hourly debits or credits without a direct alert from the platform. It is vital to track individual contract status to stay ahead of these shifting schedules.