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Binance to Revise Funding Rate Settlement Frequency for USDT-M Perpetual Contracts in January 2026

Binance to Revise Funding Rate Settlement Frequency for USDT-M Perpetual Contracts in January 2026

According to Binance, hourly settlements for certain USDT-M perpetual contracts will revert to four-hour intervals if funding rates stay at or below ±0.025% for 16 consecutive periods.

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Fact Check
The assessment is based on a single, highly authoritative, and directly relevant primary source. An official announcement from Binance confirms that effective January 2, 2026, the funding rate settlement frequency will be revised for 'certain USDS-M perpetual contracts' under specific conditions. The user's statement aligns with all the key elements of this official announcement: the entity (Binance), the action (revision of funding rate settlement frequency), the product category (USDT-M is a subset of USDS-M), and the timeframe (January 2026). The statement is slightly less precise than the source, as the source specifies the change applies to 'certain' contracts, not necessarily all of them. However, this does not render the statement false, as a revision is indeed scheduled to occur. The other sources provided are either irrelevant (spot trading page, third-party software notes) or discuss specific new contract launches without contradicting the information about the January 2026 update. Given the direct confirmation from the primary source, the statement is assessed as 'likely_true' with high confidence.
Summary

Binance announced that beginning January 2, 2026, if the funding rate for USDT-M perpetual contracts settled hourly remains at or below an absolute value of 0.025% for 16 consecutive periods, the settlement frequency will change back to every four hours starting from the 17th period. The adjustment aims to optimize settlement timing based on funding rate stability.

Terms & Concepts
  • Funding Rate: A periodic payment exchanged between traders in perpetual futures to keep contract prices close to the underlying asset price.
  • USDT-M perpetual contracts: Perpetual futures contracts margined in Tether (USDT), with no expiry date and continuous funding rate settlements.
  • Settlement Frequency: The interval at which positions in a derivatives contract are settled, affecting cash flow timing between counterparties.