Funding rate on HedgerX perpetual futures
The funding rate moves money between long and short traders every 8 hours to keep the perpetual price close to spot. HedgerX does not collect it. You pay or receive it only if you hold a position at settlement.
Read the countdown above the chart on the futures page for the exact settlement time.
What it is
The funding rate reflects the gap between the perpetual price and the spot price. When it is positive, longs pay shorts. When it is negative, shorts pay longs. These payments keep the perpetual price anchored to spot.
The formula
Funding fee = position value × funding rate. Position value is the quantity held times the mark price at settlement.
HedgerX’s example: a trader holds a 10 BTC long with a mark price of 10,000 USDT, and the funding rate is 0.01%. The position value is 100,000 USDT, so the long pays 10 USDT and a short of equal size receives 10 USDT.
Schedule
Funding settles every 8 hours. HedgerX’s BTCUSDT information page showed an 8-hour billing cycle and a rate of 0.0098% at one settlement, with other settlements over one week ranging from about -0.003% to 0.01%. The rate changes every period and differs by pair.
Cost over time
At 0.01% every 8 hours, a long pays about 0.03% a day on position value (our arithmetic). The charge falls on the full position, not on your margin, so high leverage makes it weigh more against your capital. HedgerX states that trading fees and funding fees are both calculated on position value, not on account margin.
Frequently asked questions
Does HedgerX charge the funding fee?
No. HedgerX says funding fees are exchanged directly between traders who hold long and short positions.
What if I close before settlement?
You pay or receive nothing. Only positions held at the settlement time are charged.
Where do I see the next funding rate?
Above the chart on the futures trading page, with a countdown to settlement. Rates differ by pair.
Can funding affect my liquidation price?
Yes. A fee you pay is deducted from your available margin and, if that runs out, from position margin, which moves the liquidation price toward the mark price.
Open a HedgerX account
Funding applies only to futures positions. If you trade them, register and check a contract's funding rate before you open a position.
Registration takes a few minutes. HedgerX states that its services are not available in China, Turkey, Kazakhstan and Indonesia. Futures trading can liquidate your position. This page is not financial advice.
Open a HedgerX accountThis is a referral link. We may earn a commission if you register.