KuCoin shifts USDT/USDC perpetuals to hourly funding

KuCoin will move USDT- and USDC-margined perpetual contracts to hourly funding settlement whenever a contract’s funding rate reaches its contract-specific cap or floor.

The rule took effect after 08:00 UTC on Aug. 17 and applies starting with the next funding period. The exchange implements the change without separate announcements for individual contracts.

When a scheduled funding check shows the rate at or above the upper limit or at or below the lower limit, the contract shifts to one-hour funding. KuCoin’s announcement states that its funding calculation methods, numerical caps and floors, and users’ open positions remain unchanged.

Shorter settlement intervals mean funding payments can be debited or credited more often while a contract stays in hourly mode. The cumulative cost to a trader depends on the realized funding rates over time, the side and size of the position, and how long the position remains open.

To return to a four-hour schedule, a contract must record 36 consecutive one-hour settlements where the absolute funding rate is no greater than 0.002%. Any hourly reading above that threshold resets the count and keeps the contract in hourly settlement. Once the 36 qualifying periods complete, the schedule reverts on the 37th period without a separate notice.

KuCoin used a Bitcoin perpetual with upper and lower limits of ±0.3% as an example in its announcement. Live contract data on Aug. 17 showed the XBTUSDTM perpetual with caps at +0.003 and -0.003 and an eight-hour settlement interval at 20:15 UTC; its funding rate was inside those limits, so the hourly trigger was not active.

The COTIUSDTM contract was on an hourly cycle that began on July 28 under a separate notice and predates the automatic rule.

For traders, reaching a contract-specific funding extreme can convert the next funding period into an hourly balance event, which changes when debits and credits hit margin accounts. Hourly settlement can persist if funding rates remain at or beyond the set thresholds or if the cooldown sequence does not complete.