Funding Rate
Funding payments keep the perpetual futures price close to the spot price, but they can gradually reduce your profit.
Why Funding Is Needed
A perpetual futures contract does not expire, so its price can diverge from the spot price. Funding payments help keep the two prices aligned: every 8 hours, traders on the more crowded side of the market pay traders on the opposite side.
| Situation | Who pays | Who receives |
|---|---|---|
| Futures are more expensive than spot (many longs) | Longs | Shorts |
| Futures are cheaper than spot (many shorts) | Shorts | Longs |
| Rate = 0% | Nobody |
When It Is Charged and How Much
Funding is settled every 8 hours, at 00:00, 08:00, and 16:00 UTC. If your position is open at the settlement time, the payment is debited or credited automatically.
Position 10,000 USDT, rate 0.01% → 1 USDT every 8 hours ≈ 3 USDT per day.
How to Read the Rate
| Rate | Meaning |
|---|---|
| +0.01% | Neutral market. The longs pay the shorts. |
| 0.00% | Balanced market; no payment is made. |
| −0.01% | The market is bearish. The shorts pay the longs. |
| +0.10% and above | The market is overheated. Longs pay a lot. Often precedes correction. |
When funding is 0.1% or higher, some traders open a market-neutral position by shorting futures and buying the same amount on spot. The strategy aims to offset price exposure while collecting funding three times a day. This is known as a delta-neutral strategy.
Funding Rates by Instrument
The values depend on the instrument and may change, so the table is loaded automatically instead of being entered manually in the article.
Frequently asked questions
In the "Transaction History" or "Order History" section, select the "Funding" type. All payments and charges with dates and amounts will be displayed there.