Dear Blofin users,
Based on the recent reviews, Blofin Futures will increase the funding rate settlement frequency of selected USDT-M Perpetual Contracts from every 8 hours to every 4 hoursat Oct. 12th, 2023, 08:00 (UTC).
Funding rate settlement frequency of the following USDⓈ-M Perpetual Contracts will be adjusted to every four hours.
USDT-M LPT Perpetual Contract
USDT-M BLZ Perpetual Contract
USDT-M CYBER Perpetual Contract
USDT-M UNFI Perpetual Contract
USDT-M FLM Perpetual Contract
USDT-M PERP Perpetual Contract
About Funding Rates
Funding rates help converge the price of the perpetual contract and the price of the underlying asset on the spot market. Funding rates are transferred directly between traders. Blofin only facilitates the exchange of funding amounts between long-position and short-position holders.
If the funding rate is positive, long-position holders will pay funding amounts to short-position holders, and vice versa. Funding amounts are calculated based on the nominal value of positions and funding rates.
Funding rates may vary depending on market conditions. The rates are generally much lower during times of low volatility, and may hit the maximum levels only during high volatility.
In extreme market conditions, funding rates may exceed the Maintenance Margin Ratio. As funding rates are deducted directly from users’ collateral, users are strongly advised to monitor their positions and available collateral closely to avoid margin calls and liquidations.