Perpetual Contracts Funding Mechanism
Perpetual contracts use a funding fee mechanism to anchor their market price of perpetual contracts to the spot price.
Funding Fee Schedule Funding fees are charged every 8 hours at 00:00, 08:00, and 16:00 (UTC+8) following daily contract settlements.
Users only pay or receive funding fees if they hold positions at these specific times. Positions closed before the fee collection time incur no funding fees.
Funding Fee Calculation
Funding Fee = Position Nominal Value × Funding Rate
Position Nominal Value = Mark Price × Contract Size (for USDT perpetual contracts)
Key Notes:
Funding fee calculations ignore leverage, meaning fees are based on position value regardless of leverage used.
Positive funding rates require long positions to pay short positions; negative rates reverse this payment direction.
Settlements occur three times daily (00:00, 08:00, and 16:00 UTC+8), using position values at these exact times.
Users without active positions at settlement times don't participate in that period's funding exchange.
Example:
Suppose a user holds a short ETH/USDT contract with a position value of 23.10 USDT, and the current funding rate is 0.01%. The settlement time is 12 minutes away. If the funding rate remains at 0.01% at the settlement time, the funding fee is calculated as:
Funding Fee = Position Value × Funding Rate
= 23.10 × 0.01%
= 0.00231 USDT
Since the funding rate is positive, the user will receive 0.00231 USDT, while a user holding the same position in a long position will have to pay 0.00231 USDT.