Calculation of Funding Fees and Funding Rate Instructions

Funding Rate

• Funding fees are settled periodically to adjust the futures price relative to the spot price.
• The direction of funding payments between long and short positions is determined by the positive or negative funding rate.
• When the price of a perpetual contract deviates from the underlying asset price, the exchange adjusts the funding rate to incentivize long or short traders to pay funds in the opposite direction, bringing the futures price back in line with the underlying asset price.
• When the market trend is bullish, the funding rate is usually positive and increases over time. In this case, long positions pay funding fees to short positions.
• Conversely, when the market is bearish, the funding rate is usually negative, and short positions pay funding fees to long positions.
• If the funding rate is 0.00%, no funding fees are exchanged between long and short positions.
• Generally, the maximum funding rate for Bitcoin is 0.375%, and the minimum is -0.375%, though this may vary slightly between exchanges.

Note:

• The funding rate settlement cycle for some trading pairs is 4 hours.
• The funding rate settlement cycle can be checked on the contract information page.

Calculation of Funding Fees and Funding Rate

• The Premium Index is calculated every 60 seconds.
• DeeBit Exchange's default interest rate is 0.03% per day. If fees are settled every 8 hours, the interval interest is 0.01%, and so on.
• In the fmax calculation, the default parameter is 75%, which may be adjusted by risk control based on market conditions.
• If the price deviation exceeds the maintenance margin ratio of the contract, the market is considered abnormal, and the price difference is excluded from the funding rate calculation. The default value (0.01%) is used for settlement.
• DeeBit Exchange reserves the right to adjust the upper and lower limits of the funding rate under extreme market conditions.

Funding Fee Calculation:

Important Notes:

• Funding fees are calculated without considering leverage, meaning the current position value is used regardless of leverage size.
• When the funding rate is positive: Long positions pay funding fees to short positions. When negative, the opposite occurs.
• DeeBit Exchange settles funding fees three times daily at UTC 0:00, 8:00, and 16:00, based on the position value at these times. If a user does not hold a position at the settlement time, they are not included in the settlement. (For some trading pairs, the funding rate settlement cycle is 4 hours, corresponding to six settlements per day. The funding rate settlement cycle can be checked on the contract information page.)

Example: