Funding Rate vs Perpetual Futures

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.

Leveraged cryptocurrency derivative contracts with no expiration date, enabling traders to take long or short positions with up to 100x leverage, settling continuously through funding rates that keep contract prices aligned with spot market values.