A small periodic payment between traders in a perpetual futures market.
Keeps the contract’s price close to the underlying spot/index price.
If the contract trades above the index, longs pay shorts (positive funding).
If it trades below the index, shorts pay longs (negative funding).
Encourages pricing convergence so perpetual contracts remain aligned with market realities.
For implementation details, see our article on how GRVT calculates funding rate.