How It Works
Formula:Funding = (Mark Price - Index Price) × Rate
- Rate is defined as the divergence between the spot and mark price over the funding interval
- When Mark > Index: Longs pay shorts (incentivizes selling, reduces perp price)
- When Mark < Index: Shorts pay longs (incentivizes buying, raises perp price)
Settlement
Terms: Settled funding: Funding payments that have been finalized at the end of the hourly funding period Unsettled funding: Accruing funding during the interval that has not yet been added or deducted from the trader’s balance Base lot: The smallest size tradable unit per asset; order sizes are integer base lots **Ticks: **Smallest price increment; order prices are integer ticksOverview:
- Funding accumulates continuously based on hourly snapshots and settles every hour
- Pending funding (but unsettled) can affect account health/liquidation risk in real time
- Maximum rate is capped at 500 base lots to prevent extreme payments
funding_payment = (current_accumulator - snapshot_accumulator) × position_size