💲Funding Rates

Funding rates are designed to ensure that perpetual contract trading prices closely follow the reference price of the underlying asset. While futures contracts converge to the index price on the delivery date, perpetual contracts, without expiration or delivery, use the funding mechanism to anchor the contract price to the spot price.

Each funding rate period is 8 hours, settled at the end of each period, with three settlements per day at 00:00, 08:00, and 16:00 GMT+8.

The funding rate for each period is calculated based on the data from the previous period and remains fixed for the current period. Additionally, a predicted funding rate for the next period is calculated every minute during the current period.

Funding Fee Calculation: Funding Fee = Position Value * Funding Rate

Users holding positions at settlement need to pay or receive funding fees. If a position is closed before settlement, no funding fees are incurred. Whether a user pays or receives funding Fees at settlement is determined by the current period's funding rate and the user's position. When the funding rate is positive, long positions pay funding Fees, and short positions receive funding Fees.

When the funding rate is negative, long positions receive funding fees, and short positions pay funding fees. The settlement of funding fees is conducted directly between users, and the platform does not charge any fees for it.