Binance strips disrupted overnight data from US-equity perpetuals funding calculation
In brief
- Binance excluded disrupted observations from its October 21 funding calculation for US-equity perpetual futures.
- Binance's notice cited connectivity problems at an unnamed US overnight trading system from 03:46 to 06:30 UTC.
- Premium-index data from that window was removed from the 08:00 UTC funding-rate calculation.
- Binance disclosed no resulting rates, payment amounts or loss figures, and promised no compensation.
What Binance changed
The adjustment covered Binance's US-equity perpetual futures and targeted the inputs used to determine payments between opposing traders. Per the October 21 notice, the removal applies to all TradFi perpetuals with US equities as their underlying assets.
That distinction matters more than it looks.
CryptoSlate's analysis found the intervention addressed the data used to calculate funding, rather than promising to cancel the payment itself. It's a change to the inputs. It isn't a refund.
How funding works on these contracts
Under Binance's methodology, funding is a periodic transfer between holders of long and short perpetual positions. When the rate's positive, longs pay shorts; when it's negative, shorts pay longs. The size of each payment depends on a position's nominal value multiplied by the applicable funding rate, and Binance says it doesn't charge fees on these transfers.
The premium index is where the disrupted window comes in. It compares the prices at which a specified amount could be bought or sold in the futures order book with a reference price index, and Binance then averages those premium observations over the applicable funding period. Pulling a stretch of observations out changes what goes into that average (which is exactly what the exchange did here).
Binance's TradFi perpetuals guide also describes interrupted underlying-market schedules, vendor-based reference prices and session-dependent smoothing. During specified market closures, order-book-derived inputs are used.
What the notice left out
Binance didn't publish the resulting funding rates. It also gave no payment amounts or customer-loss figures, and it made no compensation commitment, according to CryptoSlate.
So the notice tells traders what was removed from the calculation, not what that removal did to anyone's funding payment.
Frequently asked questions
How do funding payments work on Binance perpetual futures?
Under Binance's methodology, funding is a periodic transfer between holders of long and short perpetual positions. When the rate is positive, longs pay shorts; when it is negative, shorts pay longs. The amount is the position's nominal value multiplied by the applicable funding rate, and Binance says it charges no fees on these transfers.
Did Binance cancel or refund the October 21 funding payment?
No. According to CryptoSlate's analysis, the intervention addressed the data used to calculate funding rather than promising to cancel the payment itself. Binance's notice disclosed no resulting rates, payment amounts or customer-loss figures, and made no compensation commitment.
What data did Binance remove from the funding calculation?
Binance said premium-index data from 03:46 to 06:30 UTC on October 21 would be removed from the 08:00 UTC funding-rate calculation for all TradFi perpetuals with US equities as their underlying assets. The window matched intermittent connectivity problems at an unnamed US overnight alternative trading system.
