What is Funding Rate?

Funding rates is the rate used to determine the funding settlement in perpetual futures contracts, given the absence of an expiration date. Funding rates ensure that the funding mechanism tether the futures price to the mark price. This alignment aims to prevent price divergence between the two markets.

Please refer to this link for a more in-depth explanation of funding rates.

What is Funding & Settlements?

Funding settlement is a periodic payment made between long and short positions holders based on the prevailing funding rate.

Funding settlements are made every 8-hour interval at 7:00 WIB, 15:00 WIB, and 23:00 WIB. If the funding rate is positive, traders with long positions will pay those with short positions. If the funding rate is negative, traders with short positions will pay traders with long positions.

Users will only pay or receive funding if they have a position when the settlement happens. You will not pay or receive funding if you close your position before the funding settlement.

What’s the Funding Rate on Pintu Futures?

The Funding Rate at Pintu Futures is dynamic and depends on market conditions. The rate is influenced by the demand for a particular crypto.

You can view the current funding rate on the trading page of each contract pair on “Funding” menu.