To better serve users and further enhance the user experience, the platform will upgrade and optimize the existing Perpetual Futures Funding Rate algorithm at 16:00 on May 26, 2026 (UTC).
This optimization mainly involves two adjustments:
upgrading the calculation method of the Average Premium Index from an arithmetic averaging algorithm to a time-weighted averaging algorithm, and upgrading the Funding Rate calculation formula to support more flexible settlement cycles.
Before Update:
Funding Rate = Clamp ([Average Premium Index + Clamp (Interest – Average Premium Index, -0.05%, 0.05%)], Funding Rate Floor, Funding Rate Ceiling)
Note:
The default interest is 0.03% per day.
The Average Premium Index is the arithmetic mean of all calculated Premium Indices in the current period.
After Update:
Funding Rate = Clamp ([Average Premium Index + Clamp (Interest − Average Premium Index, -0.05%, 0.05%)] / (8/N), Funding Rate Floor, Funding Rate Ceiling)
Note:
The default interest is 0.03% per day.
N is the funding rate settlement frequency.
The Average Premium Index is the time-weighted average of all computed Premium Indices within the current period.
Example:
Take the BTCUSDT Futures contract with a settlement frequency of every 8h as an example.
Funding Rate = Clamp ([Average Premium Index + Clamp (0.01% – Average Premium Index, -0.05%, 0.05%)] / (8/8), -0.3000%, +0.3000%)
Funding Rate = Clamp ([Average Premium Index + Clamp (0.01% – Average Premium Index, -0.05%, 0.05%)] / 1, -0.3000%, +0.3000%)
For the complete calculation formula and examples, please refer to the Help Center: Funding Rate and Funding Fee Calculation Guide
Please refer to the updated funding rate when placing orders, and be mindful of trading risks.
Gate Team
May 20, 2026
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