Annualized Funding Rate vs Crowded Long

The funding rate per settlement period expressed as an annual percentage; calculated as rate per period × settlements per day × 365; used to compare funding cost across different assets and time periods; above 30% annualized indicates crowded long conditions; below -15% indicates crowded short conditions.

A market condition in which an excessive proportion of leveraged participants are positioned long, typically indicated by a long/short ratio above 1.8 and an annualized funding rate above 30%; associated with elevated fragility as the pool of new buyers diminishes.