Funding

Perpetual Contract Pricing Mechanism

Perpetual contract prices are anchored to the spot index price via the funding fee mechanism.

  • Long positions pay funding fees to short positions when contracts trade at a premium to the spot price.

  • Short positions pay funding fees to long positions when contracts trade at a discount to the spot price. The platform retains none of these fees.

Funding Rates

Funding fees are charged hourly and determined by two components:

  1. Interest Rate (IR) Daily rate: 0.03% (Variable).

    Hourly rate:

    HourlyĀ InterestĀ Rate=0.03%24\text{Hourly Interest Rate} = \frac{0.03\%}{24}

  2. Premium Index (P) Calculated at randomized intervals within each minute for each market:

    PremiumĀ Index=max⁔(0, Bāˆ’I)āˆ’max⁔(0, Iāˆ’A)I\text{Premium Index} = \frac{\max(0,\,B - I) - \max(0,\,I - A)}{I}

  • B: Impact bid price (average execution price to close a long via market sell)

  • A: Impact ask price (average execution price to close a short via market buy)

  • I: Spot index price

  • Impact Notional Value:

    ImpactĀ NotionalĀ Value=800 USDTInitialĀ MarginĀ Ratio\text{Impact Notional Value} = \frac{800\,\text{USDT}}{\text{Initial Margin Ratio}}

The hourly Premium Index is the average of all premium indices calculated within the hour.

Hourly Funding Fee Rate (FR)

IF then:

FundingĀ FeeĀ Rate=HourlyĀ InterestĀ Rate\text{Funding Fee Rate} = \text{Hourly Interest Rate}

Otherwise:

FundingĀ FeeĀ Rate=HourlyĀ InterestĀ Rate+PremiumĀ Index\text{Funding Fee Rate} = \text{Hourly Interest Rate} + \text{Premium Index}

Funding Rate Cap

The absolute value of the funding rate is bounded by:

∣FRāˆ£ā‰¤0.75%|FR| \leq 0.75\%

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