DEX & Trading
Funding Rate
A periodic payment between long and short perpetual holders that keeps the perp price anchored to spot.
By Protocol Signal Research · Research Desk
When a perpetual contract trades above spot, longs pay shorts; when it trades below spot, shorts pay longs. The size and frequency of this payment vary by venue (typically hourly or every 8 hours). Persistent funding flips are a leading indicator of crowded positioning.