#Bybit #Dubai #UAE #cryptocurrency exchange #Perpetual Contracts

Bybit's Dynamic Settlement Frequency System

On October 29, 2025, Bybit, the world's second-largest cryptocurrency exchange, introduced an innovative feature designed to streamline the trading of perpetual contracts. This new system allows for automatic adjustments to funding rate settlement frequencies based on real-time market conditions, aiming to improve trading efficiency and responsiveness.

The new feature is set to activate at 8 a.m. UTC on October 30, 2025, with a full rollout expected by November 3, 2025, at 6 a.m. UTC. This advancement is critical for traders as it enables more accurate reflections of prevailing market dynamics. The core mechanism at play is the adjustment of settlement frequencies. When a perpetual contract's funding rate hits its designated upper or lower limit, the system will automatically switch the settlement frequency from longer intervals (like every four hours) to once per hour. This change provides traders with a more responsive trading environment and promotes timely decision-making.

For example, under the current system, if a perpetual contract is scheduled to settle every four hours, the cycle might include settlements at times such as 4 a.m., 8 a.m., and 12 p.m. (UTC+8). However, upon reaching a funding rate limit of ±2% during a settlement at 8 a.m., the contract’s frequency will change to hourly settlements, making the next settlement occur at 9 a.m. If the funding rate remains at only 1% at the same time, no changes will be made to the frequency.

The system is designed to seamlessly revert to the longer settlement intervals of two, four, or even eight hours depending on ongoing market conditions, accomplishing these adjustments swiftly—in less than four minutes—without prior notifications. For instance, if the rate surpasses its limit at 8 a.m., the new data will be visible almost immediately after at 8:04 a.m.

However, Bybit has made it clear that this automatic adjustment feature may not apply to every contract due to considerations surrounding liquidity and volatility. Initially, certain well-used contracts, such as BTCUSDT, ETHUSDT and others, will be exceptions to this automatic adjustment system, which is a strategic move to minimize potential risks.

Furthermore, traders engaging with Bybit can monitor the latest settlement frequency directly via the platform, allowing them to adjust their trading strategies in alignment with evolving market conditions. This introduction signals Bybit’s ongoing commitment to enhancing user experience and maintaining competitiveness in the rapidly changing landscape of cryptocurrency trading.

With over 60 million users globally since its founding in 2018, Bybit is committed to creating a transparent and inclusive ecosystem. The platform is dedicated to bridging the gap between traditional finance and decentralized finance (DeFi), aiming to empower traders and foster innovation within the blockchain realm. As they continue to evolve, Bybit seeks to maintain its position as a leading player in the thriving world of cryptocurrency exchanges.

Conclusion

The advancement introduced by Bybit marks a significant evolution in the perpetual contracts space. By enabling dynamic adjustments to funding rates, Bybit is setting new standards for responsiveness and user engagement within the cryptocurrency market. Traders are encouraged to familiarize themselves with the new system to maximize their trading potential as they navigate the complexities of market volatility.