Funding
Funding keeps the mark price aligned with the index. When mark price is above index, longs pay shorts. When mark price is below index, shorts pay longs.
| Condition | Who pays | Who receives |
|---|---|---|
| Mark > Index | Longs | Shorts |
| Mark < Index | Shorts | Longs |
| Mark = Index | No one | No one |
Funding is continuous, not hourly or daily. You accrue funding every second based on the current price difference.
How Much You Pay
Funding is proportional to your position size and the gap between mark and index price. Larger positions and larger price gaps mean more funding. The rate is calculated using a 10-minute TWAP to smooth out short-term volatility.
Maker Funding
Makers also pay or receive funding based on their directional exposure. When a taker goes long, the maker takes the other side and becomes short. As prices move and trades flow through your range, your exposure shifts, and so does your funding.