Funding = Position Value * Funding Rate
Funding is the primary mechanism, which is used to tether the perpetual contract price to the spot price.
Funding occurs every 8 hours at 4:00 (GMT+8), 12:00 (GMT+8) and 20:00 (GMT+8), all traders who have open positions at one of these times, will either receive or pay a funding fee.
- Positive funding fee means that long positions pay short positions.
- Negative funding fee means that short positions pay long positions.