Binance Funding Rates — Schedule, Calculation & History (2026)
You opened your Binance account, checked your perpetual futures position, and noticed a small charge (or credit) you didn't initiate. That's a funding rate settlement — and if you trade perps on Binance, they happen multiple times a day, every day.
This guide explains exactly how Binance funding rates work: when they settle, how the rate is calculated, what the historical data shows, and how to use that information as a trader.
If you're new to funding rates entirely, start with our general explainer on what funding rates are, then come back here for the Binance specifics.
Binance Funding Rate Schedule
The textbook answer: Binance settles funding every 8 hours, at 00:00, 08:00, and 16:00 UTC.
That's still true for most pairs — but it's not the complete picture.
The Reality: Three Possible Intervals
Binance actually operates funding on three distinct schedules depending on the symbol and market conditions:
| Interval | Settlement times | When it applies |
|---|---|---|
| 8 hours | 00:00 / 08:00 / 16:00 UTC | Default for most established pairs |
| 4 hours | Every 4h starting 00:00 UTC | Many pairs have quietly moved here |
| 1 hour | Every hour | Extreme volatility events |
The shift toward 4-hour intervals is gradual — Binance has moved a significant number of perpetual pairs off the standard 8-hour cycle without announcement. If you're trading a mid-cap or newer listing, check the actual funding interval for that specific symbol rather than assuming 8 hours.
When Does My Position Get Charged?
Your position is charged (or credited) at the settlement time if you hold the position at that moment. Close your position one second before settlement and you pay nothing. Hold it one second past and you owe the full settlement amount.
The rate applied is whatever the funding rate is at the time of settlement — not an average, not a projection. The rate displayed in the UI before settlement is an estimate that can shift right up until the moment it locks in.
How Binance Calculates Funding Rates
Binance funding rates have two components. Understanding both tells you why rates spike when they do.
Component 1: Interest Rate (Fixed)
Binance uses a fixed interest rate component of 0.03% per day, which works out to 0.01% per 8-hour interval. This component is constant — it doesn't change based on market conditions. It exists to account for the cost difference between holding spot versus a perpetual contract.
For 4-hour intervals, this gets scaled proportionally (0.005% per interval). For 1-hour intervals, it's smaller still.
Component 2: Premium Index (Dynamic)
This is the component that actually moves. The Premium Index measures the difference between the perpetual contract price and the spot price (specifically, the mark price vs. the index price).
- Perp trading above spot → positive premium → positive funding → longs pay shorts
- Perp trading below spot → negative premium → negative funding → shorts pay longs
When the market is heavily long — everyone is buying the perpetual — the perp price gets bid above spot. Funding goes positive. Longs pay shorts as a mechanism to pull the perp price back toward spot. This is why you'll see high positive funding during bull runs: it's the market charging a premium for leveraged long exposure.
The ±0.75% Cap
Binance caps funding rates at ±0.75% per settlement. In practice, rates almost never approach this cap under normal conditions — but it exists as a circuit breaker for extreme dislocations.
When a rate hits or approaches this cap, it's a signal worth paying attention to.
The practical formula (simplified):
Funding Rate = Interest Rate + Premium Index
Capped to the range [-0.75%, +0.75%] per settlement.
The exact calculation involves time-weighted averages and impact bid/ask calculations — but for most traders, what matters is: is the perp trading above or below spot, and by how much?
Binance Funding Rate History
We track every funding settlement across Binance's perpetual futures catalog. Here's what the data shows.
The Numbers
- 2,130,000+ settlements tracked across 200+ Binance perpetual pairs
- 79.6% of settlements are positive — longs pay shorts nearly 4 out of every 5 settlements
- Average rate: +0.0002% per settlement
The strong positive skew reflects the structural reality of crypto derivatives: retail participation skews long, which keeps the perpetual price above spot more often than not. Funding is a mechanism that shorts benefit from simply by existing.
What This Means for Your Position
If you're running a long position on Binance perps, you should expect to pay funding most of the time. It's not a bug — it's the cost of leveraged long exposure in a market where most participants are positioned the same way you are.
If you're short, you've historically been collecting funding on roughly 4 in 5 settlements. That's a meaningful tailwind for delta-neutral and basis strategies.
Symbol-Level Data
The aggregate numbers above mask significant variation by symbol. BTC and ETH tend to have lower funding rates than alt-coins. Newer or more speculative listings can carry dramatically higher rates during launch periods.
Explore the full settlement history for individual symbols:
- Binance BTCUSDT funding rate history →
- Binance ETHUSDT funding rate history →
- All Binance perpetual pairs →
When Binance Changes the Rules
Of the major exchanges, Binance is the most conservative about changing funding intervals. That's actually what makes the changes significant.
343 Interval Changes — and What They Signal
Our data shows 343 interval changes detected on Binance across its history. Compare that to Bybit, which has made thousands. On Bybit, interval changes are almost routine. On Binance, each one is a deliberate response to market stress.
When Binance shortens an interval — from 8h to 4h, or from 4h to 1h — it's doing so to increase the frequency at which the perp price gets anchored back to spot. More settlements per day = more pressure on the dislocated price = faster reversion.
Case Study: JELLYJELLY
JELLYJELLY is a clear example of how extreme this can get. During a period of severe market dislocation, the JELLYJELLY funding rate hit Binance's -2% cap. Binance responded by shortening the funding interval to 1 hour.
The 1-hour interval accelerated the reversion. Within hours, the rate normalized and Binance returned to the standard schedule.
This kind of dynamic interval adjustment is additional context that most traders don't know about — and it can significantly change your cost of carry if you're holding a position during one of these events.
Track all Binance interval changes in real time: Funding interval tracker →
Binance vs Other Exchanges
How does Binance compare on funding rate structure? Here's a side-by-side using our settlement data.
| Exchange | Default interval | Interval range | Cap per settlement | Pairs tracked | % Positive settlements |
|---|---|---|---|---|---|
| Binance | 8h | 1h – 8h | ±0.75% | 200+ | 79.6% |
| Bybit | 8h | 4h – 8h | Varies | Large catalog | 83.7% |
| KuCoin | 8h | 8h | Varies | Mid-size catalog | 58.1% |
| Hyperliquid | 1h | 1h only | Varies | Growing catalog | 71.1% |
A few things stand out:
Bybit has the highest positive rate (83.7%) and the most interval changes (5,561) — it's more aggressive about adjusting intervals in response to market conditions.
KuCoin has the lowest positive rate at 58.1%, suggesting either different market structure or different symbol composition (more two-sided markets or more shorts collecting).
Hyperliquid runs everything at 1-hour intervals — no variation, no exceptions. That means 24 settlements per day per position. The rates are smaller individually, but they compound more frequently.
Binance sits in the middle — conservative about interval changes, strong positive skew, and the largest well-established catalog of perpetuals.
How to Trade Binance Funding Rates
There are three main approaches, ranging from passive awareness to active strategies.
1. Monitor Rates on Your Open Positions
The minimum: know what you're paying. Before entering a leveraged position, check the current funding rate and the settlement schedule for that specific symbol. A 0.1% rate might look small, but across three settlements per day it's 0.3% daily — or roughly 9% per month on your notional.
View live Binance funding rates →
2. Spot-Perp Arbitrage (Basis Trading)
More advanced: hold the spot asset long while shorting the equivalent perpetual. If funding is positive (as it is ~80% of the time on Binance), you collect funding on your short while your spot holding offsets the delta. This is sometimes called "cash and carry" or "funding arbitrage."
The risk isn't direction — it's execution, margin management, liquidation risk on the short leg, and the possibility that funding flips negative. It's a strategy with its own complexity, but the 79.6% positive base rate on Binance provides the structural tailwind.
3. Predict the Direction on Settled
The newest approach: trade predictions on whether the next Binance funding settlement will be positive or negative — without holding any perpetual position.
On Settled, you take a YES or NO position on the direction of the next settlement. You're not exposed to BTC price movement, liquidation risk, or margin requirements. You're just calling: does the next settlement pay longs or shorts?
Given that 79.6% of Binance settlements are positive, this isn't a coin flip — there's structural information in the base rate, the current premium, and market conditions.
FAQ
What time is Binance funding rate?
For most established pairs, Binance settles funding at 00:00, 08:00, and 16:00 UTC (every 8 hours). However, many pairs now settle every 4 hours, and during extreme market events Binance can shorten to hourly settlements. Check the funding interval for the specific symbol you're trading — don't assume 8 hours.
Why is my Binance funding rate so high?
High positive funding means the perpetual contract is trading significantly above the spot price — typically because many traders are long and bidding the perp above its fair value. This happens during strong bull momentum, new token listings with high retail interest, or after sharp price moves that attract FOMO buying. The funding mechanism is designed to pull the perp price back toward spot; a high rate means there's a large dislocation to correct.
Can I avoid paying funding on Binance?
Yes — close your position before the settlement time. If you hold no perpetual position at the moment of settlement, you pay nothing. Some traders actively manage their entry and exit times around settlement windows. Alternatively, if you hold both a long and short of equal size on the same symbol in hedge mode, the payments offset each other — though this doesn't eliminate margin requirements.
Does Binance change funding intervals?
Yes, and we track every change. Binance has made 343 documented interval adjustments. These typically happen during extreme market conditions — when a funding rate is abnormally high or low, Binance shortens the interval to accelerate reversion. These changes aren't always announced publicly, which is why we built a dedicated tracker to catch them in real time.
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