Binance to Update Funding Rate Formula and Mark Price Calculations

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.