Key takeaways
A positive rate means longs pay shorts
The live rate can change before settlement
The core funding formula
A single funding payment is generally estimated as settlement position value times the current funding rate. A total must account for value, rate, and direction at every settlement. Multiplying today rate by a fixed count is a scenario, not a future bill.
A positive rate generally means longs pay shorts, while a negative rate reverses direction. Preserve the rate sign and position side or an expense may appear as income. Use the contract screen for final settlement rules.
Settlement timestamps matter more than raw holding hours
Most perpetual contracts settle funding only for positions open at the timestamp. Holding seven hours but closing before settlement may avoid that period, while holding minutes across the timestamp may incur it. Contracts can use 1, 2, 4, or 8-hour intervals.
Do not close briefly to avoid one funding payment without considering spread, two trading fees, and price movement. Compare the whole cost and risk, not funding alone.
How to run a stress test
Enter the current rate, a recent high rate, and an opposite-sign rate to see a range. A 10,000 USDT position at 0.01% is about 1 USDT per settlement; nine identical settlements would be about 9 USDT in a simplified scenario.
During extreme markets, rate caps, floors, and settlement frequency can change. Include the stress result in maximum tolerable loss but do not treat it as a precise forecast.
Funding flows both ways and is not a fixed cost
A positive rate means longs pay shorts; a negative rate means shorts pay longs. Whether a given rate is a cost or income depends on your side. The calculator uses the sign to show direction, with negative meaning you receive.
The rate is not constant through the day. Most venues settle every eight hours using the rate at settlement, not the rate you saw when opening. The longer the hold, the larger the error from extrapolating a single rate.
FAQ
Does the exchange keep the funding payment?
Use the platform rule. A common mechanism exchanges funding between long and short holders while the platform facilitates settlement.
Do I pay if I do not cross a settlement timestamp?
Usually only positions open at settlement participate, but use the contract page for the exact window and exceptions.
If I hold only between settlements, do I avoid funding?
Yes. Funding is charged only to positions open at a settlement timestamp, so opening and closing between settlements incurs none. But timing exits around settlements usually costs more in slippage and fees than the funding avoided.
Are those triple-digit annualized funding rates real?
That number extrapolates the current eight-hour rate across a year of settlements; it is not a promised yield. Extreme rates usually persist for only a few periods and typically accompany violent price action, where the funding earned can be dwarfed by the move against you.
Sources and verification
Sources prioritize protocol, network, and exchange documentation. External pages can change; signed-in confirmation screens remain authoritative for fees and account status.