Funding CoinFUNDING COIN · TOOLS & LEARNING
Funding Rate to APR — Annualization Explained
Compare hourly and eight-hour rates correctly. APR is an annualized estimate, not a promised return.
Formula
For a rate r in percent per h hours: APR = r × 24 / h × 365. For a pair: APR = (short r / short h − long r / long h) × 24 × 365. This normalizes current rates without compounding.
Illustrative example
0.01% every eight hours annualizes to 10.95% if unchanged. The same rate every hour annualizes to 87.6%. Identical displayed rates cannot be compared without their intervals.
APR versus APY
APY assumes compounding under specified conditions. Our APR assumes no reinvestment and is not a return on margin. Realized results require actual payments, costs and capital used.
Exchange reference: Bybit funding · Binance funding