On May 30th, it was announced by OKX that starting from May 30, 2025, the platform will make significant adjustments to the settlement frequency of funds and fees for LPTUSDT perpetual contracts. The settlement frequency will be changed from once every 4 hours to once every 2 hours. This decision aims to better cope with the complex and ever-changing market environment and further enhance the trading experience of users.
The funding rate, as a key mechanism for the price balance of perpetual contracts, plays an important role in market fluctuations. Since perpetual contracts do not have an expiration settlement mechanism, when there is a significant deviation between the contract price and the spot price, the funding rate can effectively adjust the gap between the two. Previously, most exchanges usually calculated the funding rate in units of 8 hours. However, OKX has shortened the settlement frequency of the LPTUSDT perpetual contract to 2 hours this time, which can more promptly reflect the changes in market bullish and bearish forces and make the contract price more closely anchor to the spot price.
For instance, when the bullish force in the market is strong and the price of the LPTUSDT perpetual contract is higher than the spot price, the funding rate is positive. The long positions need to pay the funding fee to the short positions, which will prompt some long positions to take profits or reduce their positions, thereby curbing the excessive rise in the contract price. Conversely, when short sellers are in the upper hand, the contract price is lower than the spot price, and the funding rate is negative. Short sellers pay fees to long sellers, which encourages more funds to enter the long market and push the contract price back up. Through more frequent settlements, this price adjustment mechanism can function more rapidly, reducing the extent and duration of price deviations.
For users, this adjustment means that the transaction process will be smoother and the efficiency of risk hedging will be improved. In a highly volatile market, the original 4-hour settlement cycle may cause prices to deviate from a reasonable range for a relatively long time, posing potential risks to investors. Nowadays, settlements are made every two hours, enabling investors to adjust their strategies more promptly in response to market changes and reducing losses caused by significant price fluctuations.
In addition, OKX has always been committed to providing users with more high-quality and efficient trading services. This adjustment to the settlement frequency of the LPTUSDT perpetual contract fund fee is one of the important measures it takes to continuously optimize the trading experience. Previously, OKX had also adjusted the settlement frequency of funds and fees for some contracts, all of which achieved good results and were widely recognized by users.
Against the backdrop of increasingly fierce competition in the current cryptocurrency market, OKX has been enhancing the competitiveness of its platform by constantly innovating and improving its services. In the future, OKX is expected to continue to make efforts in optimizing trading mechanisms and innovating products, creating more value for users and promoting the healthy development of the cryptocurrency trading market. When participating in the trading of LPTUSDT perpetual contracts, the majority of investors should closely monitor the impact brought by the adjustment of the settlement frequency of fund fees, and reasonably formulate investment strategies to better cope with market changes.
Related Topics:
