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In our trading system, funding is calculated and credited to or debited from your account hourly. Funding calculation is a three-step process involving the premium, funding rate, and funding value. Funding uses the index price directly, not the mark price — see Mark Price for how the mark price differs and what it’s used for instead (margin, PnL, and liquidation). Funding rates are represented as decimal rates across formulas and API responses. For example, 0.0001125 means 0.01125%.

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Key Definitions

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Impact Prices

impactNotional is calculated as:
With the current maxLeverage of 5, the impact notional is 500 USDT. The impact bid and impact ask are not top-of-book prices. They are the average execution prices for filling impactNotional against the order book. On a deep book they should be close to the best bid and ask; on a thin book they may differ.
ExampleIf impactNotional is 500 USDT and the bid side has price levels with quote notionals (price × quantity) of 200 USDT at 84,820, 150 USDT at 84,780, and at least 150 USDT at 84,700, selling 500 USDT walks those three levels:
The impact bid is lower than the best bid because part of the trade fills at lower prices. The impact ask is calculated the same way on the ask side.

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Calculation Formulas

Understanding Funding Rates
  • Positive fundingRate → Longs pay shorts
  • Negative fundingRate → Shorts pay longs
The sign of the rate tells our system which side is “over-represented” or “under-represented”. When the rate is below zero, it means the position/contract is trading below the index price; shorts are effectively being subsidized to hold that position, so they must transfer the funding fee to longs.
ExampleAssume:
  • averagePremium = 0.0008
  • indexPrice = 100,000
  • positionQuantity = 1
The hourly funding rate is:
A long 1 BTC position pays:

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Usage in API

Funding calculations are used in the Get Account Fundings response, where you can see the hourly funding credited to or debited from your account for each open position.