Funding Rate Mechanism

Funding rate refers to the periodic fee paid to either long or short traders based on the price difference between the perpetual contract market price and the spot price. When the market is bullish, the funding rate is positive, and long traders pay the funding rate to short traders. Conversely, when the market is bearish, the funding rate is negative, and short traders pay the funding rate to long traders. Funding fees represent a transfer between long and short positions; the platform itself does not charge any funding fees.

Funding Fee = Position Size at Snapshot * Mark Price * Funding Rate

Funding rates update every minute. Funding fees are charged every 8 hours, calculated at UTC+8 time zone 00:00, 08:00, and 16:00, based on funding rates determined at 07:59, 15:59, and 23:59.

Funding fees are only charged or paid if a trader holds a position in either direction at the calculation time. If a trader has no open positions at the calculation time, no funding fees will be charged or paid.