Funding CoinFUNDING COIN · TOOLS & LEARNING
Crypto Funding Rates Explained — Who Pays?
Understand perpetual funding rates, payment direction and the difference between an estimate and a settled payment.
Why funding exists
A perpetual has no regular expiry. Payments between market participants help keep its price near the market reference. Each exchange defines its own rules.
Who pays
Generally, longs pay at a positive rate and shorts pay at a negative rate. The payment depends on the eligible position notional and rate. Example: a 1,000 USDT notional at 0.01% gives 0.10 USDT for one settlement period.
What to check
Read the actual interval and settlement time for the contract. Not all exchanges settle every eight hours. An estimated future rate can change; check the exchange rules for holding a position through settlement.
Exchange reference: Bybit funding · Binance funding