Basis vs Funding Rate

The difference between the perpetual futures price and the spot price of the underlying asset; a positive basis (futures above spot) drives positive funding; a negative basis (futures below spot) drives negative funding.

A periodic payment exchanged between long and short holders of a perpetual futures contract, calculated to keep the contract price anchored to the spot price; positive funding means longs pay shorts; negative funding means shorts pay longs; typically settled every 8 hours on major exchanges.