Binance funding rates are periodic payments between traders holding opposite sides of a perpetual contract. A positive rate generally means longs pay shorts; a negative rate means shorts pay longs. Funding helps pull a perpetual contract toward its underlying index price, but receiving funding does not guarantee a profitable trade.
The original article’s universal eight-hour schedule is no longer accurate for every contract. Eight hours remains a standard interval, while Binance introduced dynamic adjustments in 2025 that can move eligible contracts to four-hour or one-hour settlement. Some products have their own fixed rules. The contract page and funding history are the authoritative sources for the next rate and time.
Risk warning: Perpetual futures are leveraged derivatives. A position can be liquidated before it receives the expected funding, and funding direction or interval can change. Trading fees, spread, slippage, borrow cost, basis movement and collateral price can exceed the payment.
Binance funding status in 2026
| 2022 claim | Current status |
|---|---|
| Every contract funds every eight hours | Outdated; eight hours is standard, but dynamic and product-specific intervals exist |
| Fixed 00:00, 08:00 and 16:00 UTC schedule | Applies only where the selected contract still uses the standard interval |
| Rate based only on interest and price spread | Incomplete; Binance applies a premium index, interest component and clamp formula |
| Funding is passive income | Misleading; net results depend on price, liquidation, fees and hedge execution |
| Historical rate predicts price direction | Unsupported as a standalone signal; rates can reverse and crowded trades can unwind |
| Notification menus and thresholds | Interface-specific and subject to change |
How the funding calculation works
Binance describes the combined rate as:
Funding Rate = Premium Index + clamp(Interest Rate − Premium Index, −0.05%, +0.05%)
The exact interest component, caps and interval depend on the contract. The payment is generally the position’s notional value multiplied by the funding rate. Notional value changes with the relevant mark price, so leverage can make a small rate meaningful relative to posted collateral.
The mark price is designed to estimate fair contract value and is used for unrealized profit and loss and liquidation logic. It is distinct from the last traded price and the underlying index price. Traders should monitor all three rather than inferring liquidation distance from the chart’s last price alone.
Can funding-rate arbitrage be profitable?
A common “cash-and-carry” approach pairs a short perpetual position with a long spot position when funding is positive. The price exposures may offset in theory, but the trade is not risk-free. The perpetual and spot legs can diverge, one venue can fail, the hedge can fill unevenly, funding can flip, and margin can be liquidated.
Before entering, estimate the funding actually expected over the holding period and subtract maker/taker fees, spread, slippage, spot borrow or financing cost, withdrawal fees and tax obligations. Stress-test a sudden basis move and funding interval change. A displayed annualized rate is not a locked return.
Original November 2022 Binance funding guide (historical archive)
The original author-written sections below are preserved substantially intact. Its volumes, asset counts, interface path, screenshots, fixed intervals and trigger values reflect 2022. Repeated referral promotions and mismatched Bybit banner images were removed.
Binance is the world’s most visited and used centralized cryptocurrency exchange in the world. The exchange has over 2 billion average daily volume and over 1.4 million transactions per second. The Binance ecosystem includes not only Binance exchange, but also BNB Chain, Trust Wallet, Binance card, and more. Many crypto traders like to take advantage of an exchange’s funding rates and fees to earn some profit and passive income. In this article, we look at how Binance funding rates and fees work, and how to profit from it.
What is Binance?
Changpeng Zhao (CZ) and Ye He founded Binance in 2017. Since then, Binance has become the world’s most popular cryptocurrency exchange with the largest organic trading volume. Binance is available in most countries, including the United States under Binance.us (with the exception of a few states). The exchange also supports 600 cryptocurrencies on its international site and over 130 cryptocurrencies on Binance.us.
What are crypto funding rates?
Crypto funding rates are periodic payments of the price difference between perpetual contract markets and spot prices. Funding payments are made either to/by long or short traders depending on the funding rate.
Funding rates exist to align the perpetual contract price to the spot price. If the perpetual contract trading price is higher than the spot price, long position holders would pay short position holders. Conversely, if the perpetual contract trading price is lower than the spot price, short position holders pay long position holders.
Learn more about crypto funding rates with our article: Crypto funding rates: How it works and how to earn passive income
What are Binance funding rates?
As mentioned above, the purpose of funding rates is to prevent continued differences between the price s fo the perpetual contract markets and spot prices. Therefore, crypto funding rates are periodically recalculated. Binance recalculates its funding rates every 8 hours.
Users can locate the funding rate, and when the funding interval expires at the top of the Binance Futures page. So as seen in the below screenshot, the funding rate is -0.0014% and the funding period will expire in 3 hours 26 minutes.
How does Binance calculate the funding rate?
Binance calculates the funding rate based on two factors: The interest rate, and the premium.
Binance Futures generally fixes the interest rate at 0.03% per day (i.e. 0.01 per funding interval). However, for BNBUSDT and BNBUSD, the interest rate is 0%. Meanwhile, the premium fluctuates depending on the price difference between the perpetual contract and the mark price. A large difference, or spread, equates to a high premium. On the other hand, a low premium means there is only a narrow difference between the two prices.
When the funding rate is positive, it means that the price of the perpetual contract is higher than the mark price. Whereas if the funding rate is negative, the perpetual prices are below the mark price.
Binance uses the following formula to calculate funding rates:
Funding Amount= Nominal Value of Positions x Funding Rate
Where Nominal Value of Positions= Mark Price x Contract Size
How are Binance funding rates paid?
When the funding rate is positive, long traders pay short traders. On the other hand, when the funding rate is negative, the short traders pay the longs. On Binance, funding rates are paid between users i.e. peer-to-peer. This means Binance does not take any fees from users paying or receiving the funding rates.
Funding payments are made every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC. However, this can be subject to change in cases of extreme market volatility. Traders must have open positions 15 seconds before or after the specified funding times in order to be liable to pay or receive any funding fees.
How to profit from Binance funding rates?
The purpose of funding rates is to encourage traders to take positions that allow the perpetual contract prices to be in line with the spot market. So, traders can develop strategies that allow them to take advantage of funding rates and profit from it.
How to be notified of Binance funding rates
Binance offers a notification feature where they will send you an email/SMS/in-app notification when the funding rate reaches a certain percentage. To activate this feature, log in to your account and go to “Derivatives” and then “USDⓈ-M Futures”. Then, click on the “notification” button, “preference” and then “notification”. Here, you can set the funding fee trigger. The default trigger is 0.25%, meaning that Binance will send you a notification when the funding rate reaches 0.25%.
Crypto funding rate trends
Crypto funding rates are correlated with the price trend of the underlying asset, as seen from historical data. So the spot market generally dictates the funding rate.
The above diagram shows the correlation between Binance’s funding rates and Bitcoin prices for the period from 20 December 2019 to 20 January 2020. As can be seen, the rise in funding rates corresponds to a Bitcoin price pump.
Traders can see Binance’s historical funding rates here.
Frequently asked questions
What is a Binance funding rate?
It is the periodic rate used to transfer payments between long and short holders of a perpetual contract and help align its price with the underlying market.
Who pays when the funding rate is positive?
Long positions generally pay short positions. When the rate is negative, shorts generally pay longs.
Does Binance charge the funding payment?
Funding is generally exchanged between traders rather than retained as an exchange trading fee. Normal trading and other account fees remain separate.
Are Binance funding intervals always eight hours?
No. Eight hours is standard, but dynamic rules and product-specific contracts can use four-hour, hourly or other published intervals.
How is the funding rate calculated?
Binance combines a premium index and interest-rate component with a clamp. Exact parameters and caps vary by contract.
What is the funding payment formula?
The payment is generally position notional value multiplied by the applicable funding rate at settlement.
Do I pay funding after closing before settlement?
Funding normally applies to positions open at the settlement time. Check the selected contract's rules because execution and timestamps matter.
Is receiving funding guaranteed profit?
No. Price losses, liquidation, fees, slippage, basis changes and a reversal in funding can exceed the payment.
What is funding-rate arbitrage?
It usually means hedging a perpetual position with an opposite spot or derivative position to collect funding while reducing directional exposure.
Where can I check the current funding interval?
Use the live Binance Futures contract page and funding-rate history. Do not rely on a screenshot or interval copied from an old guide.
Sources and further reading
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