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Funding Rate

How does funding impact my trading performance?

Funding Rate

Updated at the beginning of every trade, this funding rate represents a per second rate of change in the Pool’s balance between longs and shorts.

Traders receive an Entry Funding Rate and an Exit Funding Rate to calculate the accrued funding fee or rebate paid to and from the Pool when closing a position.

In this model, the majority side (long or short) will always move the funding rate against the majority. Therefore if a trader is in the majority the entire time they hold a position, they will pay a funding fee. Inversely, the trader in the minority the entire time they hold a position would receive funding as a rebate.
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