In an ongoing effort to enhance market stability and improve user experience, OKX has announced upcoming changes to the funding rate settlement frequency for a range of its USDT-margined perpetual contracts. These adjustments are scheduled to take effect on May 23, 2025, and will impact how often traders pay or receive funding fees across multiple digital asset pairs.
This update reflects OKX’s commitment to refining its derivatives trading environment by balancing operational efficiency with risk management. Whether you're an active day trader or a long-term position holder, understanding these changes is essential for optimizing your trading strategy and managing costs effectively.
Why Funding Rate Frequency Matters
The funding rate is a mechanism used in perpetual futures contracts to align their price with the underlying spot market. It ensures that the contract price does not deviate significantly from the real-world value of the asset. Traders either pay or receive funding depending on whether they hold long or short positions and the current market conditions.
Funding settlements typically occur at regular intervals—commonly every 8 hours, but sometimes more frequently. The frequency impacts:
- Cost predictability: More frequent settlements mean smaller, more consistent payments.
- Market responsiveness: Higher frequency can help stabilize prices faster during volatile periods.
- Trading strategy design: Scalpers and arbitrageurs often rely on predictable funding schedules.
OKX’s adjustment aims to streamline operations for certain lower-volume contracts while maintaining fairness and transparency in the pricing mechanism.
Summary of Changes
Starting May 23, 2025, at 00:00 UTC+8, OKX will modify the funding rate settlement schedule for a broad list of perpetual contracts. The change affects two main groups:
- Contracts moving from every 2 hours to every 4 hours
- Contracts moving from every 8 hours to every 4 hours
All updates will be implemented simultaneously across the platform. This standardization helps reduce system complexity and improves consistency in user experience.
Contracts Adjusted from Every 2 Hours to Every 4 Hours
These include:
- API3USDT
- AUCTIONUSDT
- GASUSDT
- KAITOUSDT
- LAYERUSDT
- MAGICUSDT
- PROMPTUSDT
- SWELLUSDT
- TUSDT
This shift reduces the number of funding events per day from 12 to 6, which may affect short-term trading strategies that previously accounted for more frequent cost adjustments.
Contracts Adjusted from Every 8 Hours to Every 4 Hours
This larger group includes:
- BSVUSDT, FLMUSDT, UMAUSDT, BADGERUSDT, PERPUSDT, LPTUSDT, YGGUSDT, IMXUSDT, ETHWUSDT, USTCUSDT, TONUSDT, CETUSUSDT, ORDIUSDT, BIGTIMEUSDT, WAXPUSDT, TIAUSDT, MEMEUSDT, PYTHUSDT, TURBOUSDT, ACEUSDT, METISUSDT, JTOUSDT, MOVRUSDT, NMRUSDT, LSKUSDT, JUPUSDT, ZETAUSDT, OMUSDT, STRKUSDT, AEVOUSDT, ETHFIUSDT, WUSDT, TNSRUSDT, MEWUSDT, WIFUSDT, NOTUSDT, ZKUSDT, ZROUSDT, UXLINKUSDT, ONDOUSDT, RENDERUSDT, BOMEUSDT, DOGSUSDT, CATIUSDT, POLUSDT, HMSTRUSDT, EIGENUSDT, PNUTUSDT, ACTUSDT, SLERFUSDT, DEGENUSDT, MORPHOUSDT, MOVEUSDT, PENGUUSDT, BIOUSDT, SONICUSDT
For these pairs, funding will now occur twice as often—increasing from three times daily to six. Traders holding positions will see more frequent adjustments to their balances based on the prevailing funding rate.
Key Implications for Traders
Reduced Settlements (2h → 4h)
For contracts like API3USDT and TUSDT, less frequent funding means:
- Fewer balance fluctuations due to funding payments.
- Potentially larger individual funding amounts per cycle.
- Less need for constant monitoring if holding medium-term positions.
However, traders using high-frequency arbitrage models may need to adapt their algorithms accordingly.
Increased Settlements (8h → 4h)
For assets such as JUPUSDT, RENDERUSDT, and BOMEUSDT, increased frequency brings:
- Smoother alignment between perpetual and spot prices.
- More predictable cost distribution over time.
- Improved accuracy for strategies sensitive to funding accrual timing.
This change may benefit scalpers and algorithmic traders who prefer granular control over funding exposure.
FAQ: Common Questions Answered
Q: When exactly will the new funding schedule take effect?
A: The updated settlement frequency will go live on May 23, 2025, at 00:00 UTC+8. All affected contracts will switch simultaneously.
Q: Will the funding rate formula change?
A: No. Only the settlement frequency is being adjusted. The method used to calculate the funding rate remains unchanged.
Q: How do I check the current funding rate for a contract?
A: On the OKX trading interface, navigate to the specific perpetual contract page. The funding rate is displayed in real-time near the mark price and next settlement countdown.
Q: Can I avoid paying funding fees?
A: Yes. If you close your position before the settlement time (e.g., every 4 hours), you won’t be charged or receive any funding. However, attempting to "game" funding times carries market risk.
Q: Why is OKX making these changes now?
A: To optimize platform performance and improve market efficiency. Standardizing frequencies enhances system stability and provides a more consistent experience across different trading pairs.
Q: Will there be notifications before each funding settlement?
A: Yes. OKX sends automated alerts through its app and web platform approximately 5 minutes before each funding event.
Strategic Tips for Navigating the Change
As these adjustments roll out, consider the following best practices:
- Review your open positions: Identify which contracts are affected and assess how new settlement times may influence your P&L.
- Adjust leverage cautiously: More frequent funding (every 4h) could amplify small costs over time, especially with high leverage.
- Use funding trends strategically: Monitor historical funding rates to determine whether it's better to hold long or short under current market sentiment.
- Backtest your strategies: Simulate performance under the new schedule using past data to ensure resilience.
👉 Access advanced trading tools and real-time analytics to stay ahead of funding shifts.
Final Thoughts
OKX continues to lead in innovation within the crypto derivatives space by proactively refining its product offerings. By adjusting the funding rate settlement frequency for select perpetual contracts, the exchange strikes a balance between operational efficiency and trader needs.
Staying informed about such updates empowers you to trade smarter and manage risks more effectively. As the digital asset ecosystem evolves, platforms like OKX play a crucial role in shaping a transparent, secure, and user-friendly trading environment.
Whether you're trading emerging memecoins or established DeFi tokens, understanding the mechanics behind funding rates gives you a competitive edge.
👉 Stay ahead of market changes with real-time data and powerful trading tools — start today.
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