Binance announced that its October 21 funding calculation for US-equity perpetual futures will exclude premium-index observations affected by an overnight connection problem, according to an exchange notice. The adjustment applies to the inputs used to determine periodic payments between opposing traders, not to the valuation of stock-token collateral.
Scope of the adjustment
The notice reported intermittent network connectivity problems at an unnamed US overnight alternative trading system from 03:46 to 06:30 UTC that day. Binance said premium-index data for the affected period would be removed from the 08:00 UTC funding-rate calculation for all TradFi perpetuals with US equities as their underlying assets.
Binance disclosed no resulting funding rates or payment totals for individual traders, and made no compensation commitment.
How funding payments work
Under Binance’s funding 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. Binance says it charges no fees on these transfers. The amount depends on the position’s nominal value multiplied by the applicable funding rate.
The premium index is part of that rate calculation. It compares prices at which a specified amount could be bought or sold in the futures order book with a reference price index. Binance then averages premium observations over the applicable funding period.
Excluding the affected observations changes that input set. The announced intervention therefore addresses the data used to calculate funding, rather than promising to cancel the payment itself.
Broader context
The timing sits within the broader challenge of offering equity derivatives around the clock. Binance’s TradFi perpetuals guide describes interrupted underlying-market schedules, vendor-based reference prices and session-dependent smoothing. During specified market closures, order-book-derived inputs are used. These are general pricing mechanics; the incident notice specifically targeted affected premium-index observations.
Funding also serves a different purpose from the mark/index relationship and stock-token collateral valuation covered in recent Binance reporting. Those mechanisms concern how positions or the assets backing accounts are valued, rather than the periodic transfer between opposing positions.
