How Is the Funding Rate Calculated on Most Crypto Exchanges? ▴ Learn

How Is the Funding Rate Calculated on Most Crypto Exchanges?

The funding rate is typically calculated using a formula that considers the difference between the perpetual contract's price and the spot index price, often called the 'premium index'. This premium is then adjusted by an 'interest rate component' to reflect borrowing costs.

The calculation occurs at regular intervals, usually every eight hours. If the perpetual price is higher than the spot price, the rate is positive; if lower, it is negative.

How Often Are Funding Rates Typically Exchanged on Major Crypto Derivatives Platforms?

How Often Is the Funding Rate Typically Calculated and Exchanged?

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

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