How Does a High Positive Funding Rate Affect the Risk Profile of a Long Position?

A high positive funding rate significantly increases the cost and risk profile of a long position. The long trader must pay a high fee to the short traders every funding interval, which reduces their overall profit or accelerates their losses.

This continuous payment can quickly deplete the margin, lowering the liquidation price and increasing the chance of forced closure, even if the underlying asset's price remains stable.