How Is the Funding Rate Calculated in a Typical Cryptocurrency Exchange? ⎊ Path

How Is the Funding Rate Calculated in a Typical Cryptocurrency Exchange?

The funding rate is typically calculated using the difference between the perpetual contract's price (the Mark Price) and the Index Price, known as the basis. This basis is then multiplied by a factor and sometimes includes an interest rate component.

The formula aims to measure the premium or discount of the contract price relative to the spot market. The resulting rate is paid or received at set intervals, usually every eight hours.

How Is the Funding Rate Calculated on Most Crypto Exchanges?

How Often Is the Funding Rate Typically Calculated and Exchanged?

How Often Is the Funding Rate Typically Calculated and Exchanged on Major Crypto Exchanges?

What Is the Typical Frequency of Funding Rate Payments on Crypto Exchanges?

Why Do Exchanges Use a Mark Price Instead of the Last Traded Price for Liquidations?

What Is the Typical Frequency for Funding Rate Payments in Perpetual Futures Markets?

How Often Is the Funding Rate Typically Paid in Perpetual Swaps?

How Often Is the Funding Rate Typically Calculated and Paid?