Funding

A perpetual never expires, so nothing forces its price to match the asset it tracks. Funding does that job.

How it works

Every hour, the exchange compares the perpetual's price with the index price. The comparison uses the premium: the gap between the order book's impact price and the index, averaged over the hour.

• If the perp has traded above the index, longs pay shorts.
• If it has traded below, shorts pay longs.

The payment nudges traders toward the cheaper side and keeps the two prices together. The rate is capped per market — 0.5% to 0.75% per hour on the current testnet — so a dislocated market cannot produce a runaway charge.

What you pay or receive

The amount is your position size times the hour's average premium. A $20,000 position at a 0.01% hourly rate pays or receives $2 that hour. Funding is exchanged between traders; the exchange keeps none of it.

When it settles

Funding is settled into your balance every hour while you hold a position, and stops when you close it. The current rate for every market is shown before you trade and in the Positions panel afterwards; a rate near zero means the perp is tracking the asset closely.

Under the hood

Each market keeps a running funding index. Rather than touching every account every hour, an account settles the funding it owes or is owed the next time it is written — on a trade, a deposit, a withdrawal — by comparing the market's index with the value it last saw. The result is identical to hourly settlement, and it is part of what the block proof verifies.