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Funding rate

Perpetual futures are crypto contracts with no end date. Their price should stay close to the real (spot) price. To make that happen, buyers and sellers pay each other a small amount at set times. When funding is positive, longs pay shorts. When it is negative, shorts pay longs.

Each exchange publishes its own formula. One example mixes two parts: the price gap with the real market, and an interest part, with a maximum. Formulas and intervals differ per exchange and change over time, so check the live page of the platform you use.

Funding is a cost (or income) while you hold the position. So a backtestTesting a rule on old prices. on perpetuals should include it.

Example: Binance. Its FAQ (checked 4 November 2026) says funding is normally settled every 8 hours, at 00:00, 08:00 and 16:00 UTC. Since 2 May 2025, contracts that hit the funding cap or floor switch to settling every hour. Binance announced changes to the formula in September 2025, so always check the live page.

Related

• Crypto-assets
• Fees and commission
• Leverage
• Futures

Sources & studies

1. Bybit help centre: Introduction to funding rate (exchange documentation, cited as a formula example only)
2. Binance FAQ: Introduction to Binance Futures funding rates
3. Binance announcement: 1-hour funding settlement for capped contracts (from 2 May 2025)

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Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.