Bybit, a leading cryptocurrency exchange, has launched a new dynamic settlement frequency system for its perpetual contracts, designed to improve trading efficiency in response to real-time market conditions. This automated adjustment will shift settlement frequencies from their current intervals to once per hour when funding rate limits reach ±2% of the contract’s value, according to the company. This change is aimed at providing a more accurate reflection of market dynamics and volatility, ensuring funding rates closely track prevailing price fluctuations. Bybit has confirmed that any updates to funding rate limits and settlement frequencies will occur automatically and are likely to be implemented without prior notice. The system’s implementation will be gradual, with a full rollout scheduled for November 3, 2025. The new system will adjust settlement frequencies based on current market activity. For instance, if the funding rate reaches ±2% at 8 a.m. UTC+8 (the initial settlement time), the frequency will automatically shift to once per hour, with the next settlement occurring at 9 a.m. UTC+8. This system can revert back to longer intervals—every two, four, or eight hours—depending on market conditions without prior notice. For example, if the rate reaches the limit at 8 a.m. UTC+8, the new frequency will be visible by 8:04 a.m. UTC+8. Bybit has stated that certain contracts may not automatically receive this feature based on liquidity or volatility considerations and will not initially apply to BTCUSDT, BTCUSDC, BTCUSD, ETHUSDT, ETHUSDC, ETHUSD, ETHBTCUSDT, or ETHWUSDT Perpetual Contracts. To adapt their trading strategies as market conditions evolve, traders can view the latest settlement frequency directly on the platform.