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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.

Example

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.