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How are funding rates calculated in GRVT?
How are funding rates calculated in GRVT?

Details of GRVT's funding rate calculations.

Updated this week

The following steps are followed to determine funding rate:

  1. Fair Impact Bid/Ask

    • Calculate average fill prices for a set notional amount on both the bid and ask sides.

  2. Fair Price

    • Take the median of:

      1. Average of Fair Impact Bid/Ask

      2. Average of best bid/ask

      3. Last traded price

  3. Index Price

    • A weighted average from several external exchanges.

  4. Premium

    • Computed every second:

      Premium = Fair_Price – Index_Price

  5. Premium Rate

    • The median of (Premium / Index_Price) over the past minute.

    • Updated every minute.

  6. Capping the Rate

    • Limited to ±1% (configurable) to prevent extreme funding swings.

  7. Funding Index

    • Tracks cumulative funding changes, starting at 0.

    • Updated every minute:

      Funding_Index += Capped_Premium_Rate * (Index_Price) / (8 * 60)

  8. Funding Payment

    • Triggered whenever a position changes size (due to trades, transfers, deposits, etc.).

    • If your position size was Last_Position_Size and the Funding Index is F, then:

      Funding_Payment = -1 × (Last_Position_Size) × (F - Funding_Index_Start)

    • Afterward, Funding_Index_Start is updated to the current Funding Index if you still have a position, or reset to 0 if you fully closed it.

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