Skip to main content

​
How It Works

funding=(mark price−index price)×rate\text{funding} = \left(\text{mark price} - \text{index price}\right) \times \text{rate}
  • When mark price>index price\text{mark price} > \text{index price}: Longs pay shorts (incentivizes selling, reduces perp price)
  • When mark price<index price\text{mark price} < \text{index price}: Shorts pay longs (incentivizes buying, raises perp price)

​
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 funding rate is clamped per market. The percentage is dependent on mark price and can be found in the Market Parameters.
When a trader interacts with the protocol, their pending funding is calculated as: funding payment=(current accumulator−snapshot accumulator)×position size\text{funding payment} = \left(\text{current accumulator} - \text{snapshot accumulator}\right) \times \text{position size}