Core Concepts
Funding Rate
How periodic funding transfers keep perpetual markets anchored to spot prices.
Funding is exchanged between longs and shorts every 8 hours. When the perpetual price trades above the index price, longs typically pay shorts. When it trades below, shorts typically pay longs.
Calculation inputs
- Index price from oracle feeds
- Mark price from the book and oracle guardrails
- Premium over the funding window
- Interest-rate adjustment for USDC collateral
Payment
Funding is debited or credited in USDC margin. It does not close the position; it changes the account's collateral balance.
Note
Funding can be positive or negative. Always check the active rate before holding leveraged positions across funding snapshots.