This announcement from Binance is about a significant change to how Funding Fees work for precious metal perpetual contracts (Gold, Silver, Platinum, and Palladium).
Here is the breakdown of what is changing and why it matters for your trades:
1. What Assets are Affected?
The changes apply to the following Perpetual Contracts:
$XAU USDT (Gold)
$XAG USDT (Silver)
$XPT USDT (Platinum)
XPDUSDT (Palladium)
2. Key Changes
3. What does this mean for you?
More Frequent Payments: Instead of paying or receiving funding fees three times a day, it will now happen six times a day.
Higher Costs/Rewards: The "Cap" has increased 10x. This means if the market is very volatile or one-sided, the funding fee you pay (or receive) could be much higher than before—up to 0.50% per interval.
Risk Management: If you are holding a position for a long time, these fees can add up quickly and eat into your profits. You should keep a closer eye on your "Maintenance Margin" to avoid liquidation during high-funding periods.
Summary
Binance is making these assets more expensive to hold during high volatility to ensure the price of the "Perpetual" contract stays close to the actual "Spot" price of the metals.
