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Funding rates keep perpetual prices aligned with spot prices through periodic payments between traders.

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How It Works

Formula: Funding = (Mark Price - Index Price) × Rate
  • When Mark > Index: Longs pay shorts (incentivizes selling, reduces perp price)
  • When Mark < Index: Shorts pay longs (incentivizes buying, raises perp price)

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Settlement

  • Funding accumulates continuously based on hourly snapshots and settles every 24 hours
  • Pending funding (but unsettled) can affect account health/liquidation risk in real time
  • The maximum rate is capped at 500 base lots to prevent extreme payments
When a trader interacts with the protocol, their pending funding is calculated as: funding_payment = (current_accumulator - snapshot_accumulator) × position_size