Funding
Perpetual funding rate mechanism on RISEx
What is Funding?
Funding is a mechanism that keeps perpetual futures prices aligned with the spot index price. Unlike traditional futures that expire, perpetuals use periodic funding payments between longs and shorts.
How Funding Works
- When the perp trades above spot: Longs pay shorts
- When the perp trades below spot: Shorts pay longs
This creates an arbitrage incentive that pulls the perp price toward the index.
Funding Rate
The funding rate is calculated based on the premium/discount of the perpetual price relative to the index price.
Calculation
The funding rate formula considers:
- Premium: Difference between mark price and index price
- Interest Rate: Base rate component
- Dampening: To prevent extreme funding swings
Settlement Schedule
| Parameter | Value |
|---|---|
| Settlement Frequency | Every 1 hour |
| Max Funding Rate | ±0.75% per 8 hours |
Funding is settled automatically, payments are added to or deducted from your margin balance at each settlement.
Funding Payment
Your funding payment is calculated as:
Funding Payment = Position Size × Mark Price × Funding Rate- Positive rate: Longs pay, shorts receive
- Negative rate: Shorts pay, longs receive
Checking Funding
The current funding rate and next settlement time are displayed on the trading interface. Historical funding rates are available via the API.