🚀 Binance to Update Funding Rate Formula and Mark Price Calculations
#Binance #FundingRate #FundingRateFormula #MarkPrice #MarkPriceCalculation #PUMPUSDT #MovingAverage #PriceIndex #Price1 #Price2 #30Seconds
According to the announcement from Binance, the platform will implement changes to its funding rate formula and mark price calculations, effective from 2025-09-18 08:01 (UTC). These updates are part of Binance's ongoing efforts to enhance user experience by refining its product and service offerings.
**Funding Rate Formula Update**
The funding rate formula will undergo a modification. Previously, the formula was defined as Funding Rate (F) = Average Premium Index (P) + clamp (interest rate - Premium Index (P), 0.05%, -0.05%). Post-update, the formula will be Funding Rate (F) = [Average Premium Index (P) + clamp (interest rate - Premium Index (P), 0.05%, -0.05%)] / (8/N), where N represents the funding rate settlement frequency. For instance, the PUMPUSDT funding rate, settled every 4 hours, will now be calculated as Funding Rate (F) = [Average Premium Index (P) + clamp (interest rate - Premium Index (P), 0.05%, -0.05%)] / 2.
**Mark Price Calculation Adjustment**
Binance Futures will also adjust the mark price calculations for USDⓈ-M and COIN-M perpetual contracts. The basis of Price 2 will shift from a 1-minute to a 30-second basis. The new formula will be Mark Price = Median (Price 1, Price 2, Contract Price), where Price 2 = Price Index + Moving Average (30 Seconds Basis). This adjustment aims to provide more accurate pricing by calculating the moving average over 30 data points every 30 seconds. Similarly, for USDⓈ-M and COIN-M delivery contracts, the moving average will be recalculated every 30 seconds, enhancing the precision of the mark price. These changes reflect Binance's commitment to maintaining a robust and efficient trading environment for its users.#Binance #FundingRate #FundingRateFormula #MarkPrice #MarkPriceCalculation #PUMPUSDT #MovingAverage #PriceIndex #Price1 #Price2 #30Seconds