KuCoin’s new perp rule can turn one funding-rate extreme into 36 hours of hourly settlements
KuCoin activated a rule after 08:00 UTC on Aug. 17 that moves USDT- and USDC-margined perpetual contracts to hourly funding settlement once their contract-specific funding cap or floor is reached.
The change applies starting with the next funding period and will happen without a separate announcement, shortening the time between potential funding debits and credits for traders who keep positions open.
Under the mechanism, the trigger is the funding rate at a scheduled settlement. If that rate is at or above the contract's upper limit, or at or below its lower limit, KuCoin switches the contract to a one-hour interval unless it is already settling hourly.
| Trigger condition | What KuCoin changes | What does not change | Trader impact |
|---|---|---|---|
| Funding rate hits or exceeds contract cap | Contract moves to hourly settlement next period | Funding formula, cap, floor, and positions stay unchanged | Funding debits/credits can occur more often |
| Funding rate hits or falls below contract floor | Contract moves to hourly settlement next period | Direction and size of position still determine payment | Shorter interval between balance impacts |
| 36 consecutive hourly periods stay within ±0.002% | Contract returns to four-hour settlement from 37th period | No separate notice required | Traders must track the reset condition themselves |
| Any hourly reading exceeds ±0.002% during cooldown | 36-hour count resets | Contract remains in hourly mode | Hourly exposure can persist longer than expected |
KuCoin said the interval adjustment changes settlement frequency but leaves its funding calculations, funding limits, and users' positions unchanged. Funding may be debited or credited more often, but cumulative cost still depends on the realized rates, the side and size of the position, and how long it remains open.
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