Recently, many exchanges have adjusted the funding rate collection cycle for altcoins from the original 4 hours to once every 1 hour. As a result, the profit potential for short positions has been significantly compressed—just trying to make a little profit, and the cost of funding fees alone is enough to eat up most of the gains.
Compared to the previous mechanism, the changes are quite obvious. In the past, funding rates were collected at most every 4 hours, and even after several rounds of deductions, if market sentiment reversed, prices would adjust quickly, making the cycle relatively short. Now, with the collection happening every 1 hour, the confrontation time between longs and shorts has been extended, traders stay in the market longer, and the number of trades increases accordingly.
From the exchange's perspective, the benefits of frequently adjusting the fee cycle are clear—more frequent fee collection means more trading fee revenue. Extending the game cycle for counterparties naturally boosts market activity and trading volume, which in turn expands the platform's profit margins. This mechanism is quite cleverly designed; however, for traders, the cost structure has quietly changed.
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DeFiChef
· 01-07 14:16
Here we go again, trying to exploit the system? Exchanges' tactics are truly clever—changing fee rates and frequency is just a disguised way to cut into traders' profits.
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Charging every hour, who can withstand that? Contracts are basically unplayable now.
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Damn, another exchange pulling this stunt. Do all platforms have to follow suit?
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Nightmare for short sellers—short-term profits are being wiped out completely.
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What a joke—just money grabbing. How dare they call it mechanism design?
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They're all about earning fees; there's no way to make a living like this.
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I just want to ask, is there any exchange that hasn't changed yet?
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Wow, disguising fee hikes as optimization—truly brilliant.
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MEVvictim
· 01-07 09:57
Let's cut another wave, the exchange's tactics are really clever.
The exchange makes so much profit, and we're still stubbornly holding on.
Fees are charged every hour, shorting is like giving away money.
That's why I don't touch small coins anymore.
Exchanges are really getting better at squeezing profits.
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PositionPhobia
· 01-07 09:52
The exchange's move is brilliant, charging every hour. Anyone who uses it will get ripped off.
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BlockchainTherapist
· 01-07 09:40
They're at it again, charging funding rates every hour. Isn't this clearly trying to suppress the market?
The exchange's move is really clever—charging rates more frequently means more profit for them, while traders suffer heavy losses.
There's no way to short now; after paying the rates, they still expect to make money? Think again.
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TommyTeacher
· 01-07 09:38
This wave of exchange operations is really brilliant, playing more and more tricks to fleece us.
Basically, they just want to cut more of our leeks; changing the cycle means more trading fees.
Once an hour? Bro, are you trying to make us lose everything, even our underwear?
We should have seen through the true nature of exchanges earlier; to them, we are just cash machines.
But on the other hand, this kind of operation actually indirectly reduces the attractiveness of short selling. Is the next step to push some "new mechanism"?
Damn, it seems like we need to shift our focus; small exchanges might not be following suit yet.
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LiquidatedTwice
· 01-07 09:29
Here comes the harvest again, collecting every hour. This rhythm leaves no room for people to breathe.
Exchanges are really ruthless, treating us like ATMs.
Currently, there's no way to play the short side; the fee rate eats you alive.
This is exactly what the big players want—to trap retail investors and make them pay more in transaction fees.
Changing the timeframe from 4 hours to 1 hour, honestly, it's just about making more money.
I don't even dare to hold a position for more than an hour now; the risk is too high.
Once the fee mechanism changes, the profit margin evaporates instantly. So annoying.
Recently, many exchanges have adjusted the funding rate collection cycle for altcoins from the original 4 hours to once every 1 hour. As a result, the profit potential for short positions has been significantly compressed—just trying to make a little profit, and the cost of funding fees alone is enough to eat up most of the gains.
Compared to the previous mechanism, the changes are quite obvious. In the past, funding rates were collected at most every 4 hours, and even after several rounds of deductions, if market sentiment reversed, prices would adjust quickly, making the cycle relatively short. Now, with the collection happening every 1 hour, the confrontation time between longs and shorts has been extended, traders stay in the market longer, and the number of trades increases accordingly.
From the exchange's perspective, the benefits of frequently adjusting the fee cycle are clear—more frequent fee collection means more trading fee revenue. Extending the game cycle for counterparties naturally boosts market activity and trading volume, which in turn expands the platform's profit margins. This mechanism is quite cleverly designed; however, for traders, the cost structure has quietly changed.