Funding is paid at 04:00, 12:00, 20:00 UTC to traders holding positions at those times. Funding is paid on the USD notional value of the position (calculated using Mark Price). When the Funding Rate is positive, longs pay shorts, and when the Funding Rate is negative, shorts pay longs.
The Funding Rate is calculated in 2 steps:
- Minutely Premium Rate (PR) = ((Mark Price - Index) / Index) * 100%
- The minutely premium rate (PR) is calculated every minute.
- The funding rate (F) is calculated at the end of one 8 hour period and paid 8 hours later.
Closed Markets / Maintenance
When a market is closed due to predefined market hours or maintenance, the mark price of the contract will be fixed to the index price. This causes the funding rate to be zero - or trend towards zero - for funding periods that include a market closure.