What is Funding?
Updated
Fundings are periodic payments exchanged between the buyer and seller every 8 or 4 (for BLZUSDT pair) hours. If the rate is positive, then the long positions* will pay and the short positions* will receive the rate, and vice versa if the rate is negative.
When the Funding Rate is positive (perpetual contract trades at a premium to spot), longs pay shorts. When it is negative (perpetual contract trades at discount to spot), shorts pay longs.
Note: You will only pay or receive funding if you hold a position at the Funding Timestamp.
Funding Timestamps: 9:35 PM, 5:35 AM, 1:35 PM IST
Your position value is irrespective of leverage. For example, if you hold 100 BTC/USD contracts, funding is charged/received on the notional value of those contracts, and is not based on how much margin you have assigned to the position.
*Glossary
Long Position: A buyer of futures contracts. A long position is the number of purchase contracts held by the buyer.
Short Position: A seller of futures contracts. A short position is the number of sales contracts held by the seller.
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Note - If your margin reaches 0 due to funding, the open position will be closed because of insufficient margin available to adjust the funding, regardless of profit or loss.
