The perpetual contract uses a capital cost mechanism to anchor the market price of the perpetual contract to the spot price.
Funding fees are charged every 8 hours, and the collection time is 4:00, 12:00 and 20:00 after the settlement of the contract every day. Only when holding a position at that moment, the user needs to pay or collect funds. If the position is closed before the fee is charged, no funding fee is required.
1. Theoretical funding costs
Funding fee = position value * funding rate. When the funding rate is positive, the long pays the short; when the funding rate is negative, the short pays the long.
Estimated funding rate=Clamp(MA(((contract buying price + contract selling price)/2-spot index price) / spot index price-Interest), a, b)
*Interest is currently 0
*Perpetual contract: a, b are the maximum upper limit and the minimum lower limit (tentatively +/- 0.0030), MA stands for moving average
The fund rate is calculated every minute. At the time of fund fee collection, the fund rate calculated at 04:00, 12:00 and 20:00 Singapore time will be used for fund fee collection.
2. Actual funding costs
When the fund fee is collected, it will be deducted from the user's position margin in priority. If the position margin balance is insufficient, it will be deducted at most until the user's margin rate is equal to the maintenance margin rate, and the excess will be deducted from the user's account available margin.
The platform does not charge any funding fees; funding fees are collected between users.
Example: Suppose a trader bought 100 BTC forward contracts (long) at 8:11 Singapore time at $10,000.
If: at 10:20, the trader closes the position, then no funds will be charged or received. At 12:00, the trader still holds the position, and the latest transaction price of BTC is 10024 USDT/BTC, then the value of the position = 10024*100*0.0001 = 100.24 USDT. Assume that the funding rate at that time was 0.025%. At this time, the user will have to pay the position value * funding rate = 0.02506 USDT funding cost (if the funding rate is negative, then the short side denies the long funding cost).
3. How to view asset costs
In the asset-USDT, you can view the funds paid/collected