Funding Rate vs Mark Price

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.

The price used to calculate unrealized profit/loss and trigger liquidations on a perpetual futures contract; derived from the index price with a short-term basis adjustment to prevent single-trade manipulation from triggering mass liquidations.