The rate can change
Funding is typically calculated from market conditions and can move as pricing and positioning change.
FUNDING RATE GUIDE
PERPETUALS / HOLDING COST / MARKET BALANCE
Crypto funding rates explained.
Many perpetual markets use recurring funding payments to help keep contract prices close to the underlying market. Funding is not the same as a trading fee, and it can change over time as market positioning and pricing conditions change.
PERPETUALSFUNDINGHOLDING COST
HOW FUNDING WORKS
Funding connects position direction with recurring market payments.
Exact formulas, intervals and settlement rules vary. Traders should use the live market information as the source of truth rather than assuming that a funding rate remains constant.
Longs or shorts may pay
Depending on the sign of funding, one side of the market may pay the other.
Payments recur
Many perpetual markets apply funding on a recurring schedule defined by the venue.
Duration matters
A position held through multiple funding intervals can accumulate payments or receipts.
Funding affects net results
Trading P&L should be considered together with funding, fees and other position costs.
Check the current market
Review the displayed funding information before opening or holding a perpetual position.
DO NOT CONFUSE
Funding is only one part of perpetual trading cost.
FUNDING
Recurring market mechanism.
VARIABLEChanges with conditions
The rate can rise, fall or change sign.
DIRECTIONDepends on market side
Long and short positions can experience funding differently.
TIMEHolding period matters
Longer holding periods can cross more funding intervals.
OTHER COSTS
Review the whole position.
TRADING FEESExecution costs
Opening and closing transactions may have separate fees.
SLIPPAGEExecution price
Actual fills can differ from expected prices in moving or thin markets.
LIQUIDATIONMargin risk
Funding does not remove leverage or liquidation risk.
RELATED GUIDES
Understand the rest of the perpetual workflow.
FUNDING FAQ
Quick answers.
What is a funding rate?+
It is a recurring payment mechanism used by many perpetual markets to help align contract and underlying prices.
Is funding always positive?+
No. Funding can be positive or negative depending on market conditions and the venue's formula.
Is funding the same as a trading fee?+
No. Funding and execution fees are separate concepts.
CHECK LIVE CONDITIONS
Open HOODBTC Trade ↗Funding can change while the trade is open.
Use the live market data and position details before making a trading decision.