Funding on Binance is a periodic payment between longs and shorts on a perpetual contract; by default it settles at 00:00, 08:00 and 16:00 UTC. A positive rate means longs pay shorts, a negative one means the opposite. Whoever holds the position at the moment of settlement pays or receives. The base part of the rate is 0.01% per 8 hours; the rest is the premium — how far the contract trades above or below the index price. The payment goes between traders; Binance takes no fee from it.
Binance funding rate: questions and answers
How often does Binance pay funding?
By default every 8 hours: at 00:00, 08:00 and 16:00 UTC. Some contracts settle more often — every 4 hours, and every hour when the rate hits its limit. That is why rates are converted to one period for comparison: the table has “Per 8 hours”, “Per day” and “Annualized” switches.
How is the funding rate calculated on Binance?
The rate has a base part — 0.01% per 8 hours — and a premium. The premium shows how far the contract price is above or below the index price, averaged over the interval. While the premium stays within 0.05% of the base part, the rate equals the base part; beyond that, the rate follows the premium. Contract above the index — the rate rises; below — it falls.
Who gets the funding money on Binance?
Traders: longs or shorts pay, depending on the sign of the rate. Binance takes no fee on funding. The payment is the rate times your position size in dollars at the mark price at the moment of settlement. Close the position before settlement and you pay and receive nothing.
Is there a cap on the Binance funding rate?
Yes. For most contracts the rate cannot go beyond ±2%, and for the largest ones (for example BTCUSDT and ETHUSDT) the limit is 75% of the maintenance margin ratio. In sharp moves Binance may change the limits, and a contract that hits its limit moves to hourly settlement.
Why do some coins on Binance pay funding every 4 hours?
The settlement interval on Binance depends on the contract and can change: after a settlement that hits the limit, a contract is moved to hourly settlement and later returned to every 4 hours. The rate per settlement is scaled to the interval, so rates of different coins are compared in one measure — per 8 hours or per day: the table has those switches.
How do I get an alert when the Binance funding rate rises?
In the QuickRadar builder pick the “Funding rate” condition, the Binance exchange, a coin and a threshold — the message arrives in Telegram as soon as the rate crosses it.