KuCoin activated a rule on Aug. 17 at 08:00 UTC that shifts USDT- and USDC-margined perpetual contracts to hourly funding settlement once their funding rate reaches its contract-specific cap or floor.
The mechanism applies starting with the next funding period after activation. When a contract’s funding rate hits its upper or lower limit at a scheduled settlement, the contract switches from its standard interval to one-hour settlement, according to KuCoin. The Bitcoin perpetual contract (XBTUSDTM) carried funding limits of 0.3% as upper and lower bounds, with an 8-hour settlement interval as of 20:15 UTC on Aug. 17.
Contracts remain on hourly settlement until their funding rate stays within ±0.002% for 36 consecutive hourly periods. Once that threshold is met, the contract reverts to its original four-hour settlement cycle. Any single hourly reading that exceeds ±0.002% during the 36-hour cooldown period resets the counter to zero.
KuCoin emphasized that the change affects settlement frequency only. “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,” the exchange stated. The funding formula, cap, floor, and trader positions remain unchanged.
The rule does not apply uniformly across all perpetual contracts. KuCoin sets contract-specific funding caps and floors rather than using a universal limit. The COTI perpetual contract (COTIUSDTM) moved to hourly settlement on July 28 under a separate notice from KuCoin.
The activation occurred without a separate announcement, according to CryptoSlate Editor-in-Chief Liam ‘Akiba’ Wright, who reported the rule change. KuCoin did not name the official or spokesperson behind the announcement.
