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What is the funding rate?

Funding is a periodic payment exchanged between long and short position holders. Its purpose is to help perpetual contract prices remain aligned with the underlying reference market.
  • Positive funding: longs pay shorts.
  • Negative funding: shorts pay longs.
  • Funding payments are exchanged between traders rather than collected as a trading fee by the platform.
Funding intervals can vary by contract, such as 8-hour or 4-hour cycles.

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Funding-rate calculation

A simplified representation is:
The final funding rate is bounded by the configured maximum funding range for the market.

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Impact prices

Impact bid and ask prices are calculated from the order book using a configured notional depth. They represent the average executable price needed to trade the target notional amount.