Funding Costs
The funding rate is charged every 8 hours for one period, and is settled at the end of each period. That is, 00:00-08:00 for one period, the settlement time is 08:00; 08:00-16:00 for one period, the settlement time is 16:00; 16:00-the next day 00:00 for one period, the settlement time is 00:00. All the above times are subject to UTC+8 time. If the funding rate is positive, the long position will pay the funding fee to the short position. Conversely, if the funding rate is negative, the short position will pay the funding fee to the long position. Traders are only required to pay or receive a funding fee for positions held at these time cutoffs. If a trader closes a position before the specified funding fee timestamp, no funding fee is paid/received.
For example, the base currency of the BTC/USD perpetual contract is BTC and the denominated currency is USD, in other words, the interest rate is a function of the interest rate between these two currencies: Interest Rate (I) = (Denominated Rate Index - Base Rate Index) / Funding Rate Time Interval.
Last modified 9mo ago