Funding rates · settlement interval
Funding payment frequency: why the interval matters
A funding rate is inseparable from its settlement interval. An identical percentage charged hourly and every eight hours describes different recurring exposure. Before estimating a perpetual-futures cost, confirm the venue's interval, next funding time and whether the displayed rate is final or projected.
The rate needs a clock
A funding percentage without an interval cannot be compared fairly. Some contracts settle at different schedules, and a venue can change limits or intervals under its published rules.
Only an open position at the event matters
Eligibility, position size and the applicable mark price are typically determined at the funding event. Opening after or closing before that time can change the practical outcome.
Avoid annualizing a snapshot
Multiplying one observed interval into a daily or annual figure assumes that the rate persists. Funding can move, flip sign or be capped, so the result is a scenario rather than promised yield or cost.
Why exchanges use intervals
Funding is a periodic transfer designed to help a perpetual contract track a reference market without an expiry date. An interval gives the venue a recurring moment to apply its formula to eligible long and short positions.
There is no universal timetable. Bybit notes that funding intervals and rate limits can differ by trading pair, and venues may adjust their rules during volatile conditions. The contract page, not a generic rule of thumb, tells you the relevant interval.
How frequency changes an estimate
Suppose the same 0.01% rate were applied to a 10,000 USDT notional. One applicable settlement would be about 1 USDT before other costs, regardless of whether that settlement occurs after one hour or eight hours. The frequency changes how often that separate calculation can recur.
That example is not a prediction. The position can change, the mark price and rate can move, and different contract structures use different conventions. A rate displayed for one interval should never be silently treated as a daily charge.
Projected versus applied funding
A live screen may show a current or projected rate before the next funding time. It helps frame a possible transfer but may not be the final applied number. Check the timestamp and the venue's wording, especially in a volatile market.
After a settlement, review the venue's funding record and actual position details. A calculation made before the event can differ because the position was adjusted, the rate changed or the contract uses a price and multiplier you did not model.
A safer comparison between venues
Match the same asset and contract type, then record each venue's rate, interval, timestamp, price reference and limits. Present the raw interval first. Normalized figures can be useful for analysis only when their assumptions are explicit.
Funding is one cost or receipt among many. A trade can also face maker or taker fees, spread, slippage, borrowing arrangements and liquidation risk. Use the interval to understand mechanics, not to turn a transient rate into a return claim.
Before you act
- Check the exact contract's funding interval and next event time.
- Use position notional and the interval rate for a simple estimate.
- Treat a projected rate as subject to change until settlement.
- Compare raw intervals before using any normalized figure.
Questions this page answers
Are all perpetual funding payments every eight hours?
No. The schedule can differ by venue and contract, so the live contract specification controls.
Does an hourly funding rate mean I will pay it for every hour?
Only an eligible position at each applicable funding event is affected, and the rate may change between events.
Methodology and limits
This page explains funding timing, not a calculator or yield product. Verify a venue's current interval, funding formula, cap and position-eligibility rules before opening or holding a perpetual position.