Funding Rate
2024-04-24 06:06:30The USDⓈ-M Perpetual Futures has no expiration or delivery date, and the market price of the Perpetual Futures is anchored to the spot price through the funding fee mechanism. The funding fee is settled every 8 hours at 0:00 (UTC+8), 8:00 (UTC+8) and 16:00 (UTC+8).
Users who hold positions at settlement will pay or receive funding fees. So, if positions are closed before the settlement, no funding fee will be generated.
At the time of settlement, whether the user should pay or receive the funding fee is determined by the positive or negative funding rate of the current period and the user's position direction (Long or Short). If the funding rate is positive, longs pay shorts. If negative, shorts pay longs. The funding fee is completely settled between users and is not charged by the platform.
1. Calculation Formula
(1) Funding Fee
Funding Fee = Position Value * Funding Rate
(2) Funding Rate
Funding Rate = Premium Index (P) + Clamp [Base Rate (I) − Premium Index (P), −0.05%, +0.05%]
And,
a. Premium Index (P) = [Max (0, Bid Price − Spot Index) − Max (0, Spot Index − Ask Price)] / Spot Index; updated every 15 seconds.
b. The Base Rate (I) is set at 0.01%. Variations may exist within specific perpetual futures.
(3) The following indicates the peak boundary limits of the funding rate:
Upper and lower limits of the funding rate = Clamp [Funding Rate, a, b]
Parameters a and b above are associated with the maximum leverage of a futures symbol. For details, please refer to the table below:
The above data and indicators may be adjusted in real time according to market conditions without further notice.
The funding rate is calculated every 15 seconds, and the funding fee is settled at 00:00 (UTC+8), 08:00 (UTC+8), and 16:00 (UTC+8) based on the funding rate at that time.
2. Actual Funding Fee
(1) Funding Fee Deduction Rules:
• In the cross margin mode, the funding fee will be directly deducted from the account balance; in the isolated margin mode, the funding fee will be deducted from the isolated margin;
• If the funding fee is deducted but the margin balance is less than or equal to the maintenance margin, forced deleveraging or liquidation will be triggered.
(2) The actual funding fee for the user depends on the total amount of funding fee deducted by the system from the counterparty's account.