Regarding the new funding rate regulations for a certain cryptocurrency, I would like to clarify the core logic for everyone.

The key to the rule is this continuous 16-hour cycle. Within this cycle, the absolute value of the rate must stay below 0.025% — the absolute value is crucial here, with both positive and negative signs measured by the same standard.

In other words, if the rate is negative, it must remain within –0.025% for 16 consecutive hours. You might see situations like –0.024%, –0.023%, which are compliant with the rules. But as soon as it breaks this threshold, for example dropping to –0.026%, the cycle resets and starts over.

The logic for positive rates is the same — the entire period cannot exceed the 0.025% upper limit, or the timer resets. Essentially, this mechanism is a constraint on rate fluctuations to ensure trading environment stability. For traders, understanding this set of rules can help you better anticipate changes in your position costs.