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Funding fees on perpetual futures
How the rate, notional and interval set what a position pays or receives.
What funding is
Perpetual futures never expire. To keep their price close to spot, exchanges charge a periodic funding payment between longs and shorts.
When the rate is positive, longs pay shorts. When it’s negative, shorts pay longs. The payment passes between traders. The exchange doesn’t keep it.
The formula
Notional value is position size × mark price at the funding time. You pay or receive funding only if you hold the position at that moment.
Worked example
0.5 BTC long, one interval
- Mark price
- US$60,000
- Notional
- US$30,000
- Funding rate
- +0.01%
- Long pays
- US$3.00
30,000 × 0.0001 = 3.00. Made-up numbers for illustration.
At three intervals a day, that’s US$9 a day, or about US$63 a week if the rate holds. Rates change every interval. Some contracts settle every 4 hours or every hour, so check your contract’s specification.
Why funding gets missed
- P&L screens often show price P&L and funding separately.
- Funding is charged on notional, so leverage makes it larger relative to margin.
- Trade history and funding history usually export as separate files.
Primary sources
Check your own numbers
Sourced Trader
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Educational only. Examples use made-up numbers and aren’t recommendations. Questions? Email support@sourcedtrading.com.