Glossary · Funding and perpetuals
Funding rate
The funding rate is a periodic payment between the holders of long and short positions in a perpetual future. It keeps the perpetual's price close to the spot price of the asset: when the perpetual trades above spot, the rate is positive and longs pay shorts; when it trades below, shorts pay longs.
Venues settle funding every hour, every four hours or every eight hours, and quote it per interval. Because the intervals differ, rates are only comparable once annualised. The rate is set anew every interval, so today's figure is a starting point, not a promise.
See live funding across venues on the free screener