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What is funding rate?
What is funding rate?

Explains what a funding rate is in general.

Updated this week
  • 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.

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