Funding is the primary mechanism, which is used to tether the perpetual contract price to the spot price.
- Funding Calculation：
- Funding = Position Value * Funding Rate
- Funding Rate Calculation
Funding Rate = Clamp(MA((（Perpetual Buy order +Perpetual Sell order）／2-Spot Market Price)／Spot Market Price- Interest), a, b)
*Current Interest is 0
- Positive funding fee means that long positions pay short positions.
- Negative funding fee means that short positions pay long positions.
Funding occurs every 8 hours at 8:00 (GMT+8), 16:00 (GMT+8) and 00:00 (GMT+8), all traders who have open positions at one of these times, will either receive or pay a funding fee.
Contract Info are available by the Chart as below:
If John has a 1 BTC worth of Sell Short position and the Funding Rate is -0.006616%.
John then will pay funding to Buy Long side as a Sell Short side: 1 BTC*0.006745%=0.00006745 BTC.
Users with the Buy Long order will receive the Funding.