What Is the Standard Interest Rate Component Often Used in the Funding Rate Calculation?

The Interest Rate Component is a small, fixed rate component that is included in the funding rate formula. It typically represents the cost of borrowing the base currency (e.g.

USD or stablecoin) to trade the asset. A common standard is 0.01% per day, or 0.0001% per 8-hour period, though this can vary slightly by exchange and asset.