Introduction to Perpetual Contract Funding Fee Rules

What is the Funding Rate

To ensure that the price of perpetual contracts reflects changes in the underlying market, exchanges have established a funding fee mechanism. This mechanism facilitates periodic cash flow exchanges between long and short position holders, causing the perpetual contract price to converge with the index price.

When the funding rate is positive, long position holders pay funding fees to short position holders; conversely, when the funding rate is negative, short position holders pay funding fees to long position holders.

Funding Fee Settlement Times

Generally, the platform collects and pays funding fees every 8 hours at 8:00, 16:00, and 24:00 (UTC+8) each day. Each perpetual contract's fees are collected at millisecond precision without interrupting trading. Traders holding open positions are obligated to pay or receive funding fees after the funding fee calculation is completed. If you close your position before the funding fee calculation, you will neither pay nor receive funding fees. Additionally, if a perpetual contract goes offline before the funding fee calculation, the current funding fee will be voided and not collected or paid. The actual funding fee calculation process may take up to one minute. For example, if a trader opens a position at 00:00:20 (UTC+8) and the funding fee calculation has not yet ended, the trader may still need to pay or receive funding fees.

The above funding fee collection and payment times may be adjusted in real-time based on market conditions.

How Funding Fees Are Calculated

Funding Amount = Position Notional Value * Funding Rate

Position Notional Value = Mark Price * Contract Size (USDⓈ-Margined Contracts)

Contract Multiplier * Contract Size / Mark Price (Coin-Margined Contracts)