Funding
- Funding is paid continuously and is automatically added to the user's
Unsettled Pnl - To see past funding earned, visit the Account page in the UI (under construction)
- NOTE: price levels used for funding calculations must have at least 100 units of size on them to prevent price manipulation.⚠
- NOTE: If there is no bid or ask during the funding snapshot, then no funding will be paid. This is to prevent gaming in illiquid markets.⚠
Funding is computed continuously as a difference in the index price and current book price (current mid). The
UpdateFunding instruction is called by the Keeper roughly every 5 seconds and so funding is paid out roughly every 5 seconds. The calculation is as follows:book_price = (bid + ask) / 2
diff = clamp(book_price / index_price - 1, -0.05, 0.05)
time_factor = (now - last_updated) / FUNDING_PERIOD
funding = diff * time_factor * contract_size * index_price
Asset | Funding Frequency | Funding Period | Normalization Ratio |
|---|---|---|---|
BTC-PERP | Continuous | 24h | 1 |
BTC^2-PERP | Continuous | 7 days | 10**6 |
BTC-1D-IV | Continuous | 24h | 1 |
NOTE: BTC^2 is normalized by 10**6 for ease of trading.
⚠
If SOL is trading at $100 and the POWER-2 SOL is trading at $11,000, then the funding payment is $11,000-$100^2 = $1000 or 10%. This 10% is paid out over 168 hours, meaning that the hourly funding payout will be 0.10/168=0.000595.
Last modified 6mo ago