Skip to main content
Learn

What Factors Determine the Funding Rate?

The funding rate is determined by the interest rate differential and the premium or discount of the perpetual contract to the spot price.
Greeks.Live22.11.25

What Factors Determine the Funding Rate?

The funding rate is determined by two main factors: the interest rate and the premium. The interest rate is the difference between the interest rates of the two currencies in the perpetual contract.

The premium is the difference between the price of the perpetual contract and the price of the underlying cryptocurrency. The funding rate is calculated every eight hours, and it can be either positive or negative.

How Does the Liquidity of a Token Influence the Choice of Its Discount Rate?
How Is the Interest Rate for a Stablecoin Determined in a Decentralized Lending Pool?
How Is the Discount Rate (WACC) Determined for a Highly Volatile Crypto Asset?
How Does the Concept of ‘Interest Rate Parity’ Relate to Derivatives?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.