What is a funding rate?
A funding rate is a periodic payment between long and short perpetual-futures positions. It helps keep the perpetual price near its reference market, but the formula, interval, cap, and settlement rules vary by venue and contract.
Why perpetual contracts need funding
Dated futures converge toward spot as expiry approaches. Perpetual contracts have no expiry, so venues use funding payments to discourage persistent price gaps.
A positive rate normally means longs pay shorts; a negative rate normally reverses that flow. Funding is a positioning cost, not a directional forecast.
How to compare rates correctly
Funding payment is generally position notional multiplied by the rate for that settlement period. Eligibility and calculation details must be checked against the venue's current contract rules.
Kieran Lab retains 1h-versus-1h / 4h candidates and excludes only direct 1h-versus-8h pairs. Allowed pairs are standardized to a common 8h observation window.
Frequently asked questions
Does a high positive rate mean price must fall?⌄
No. It can indicate crowded long positioning, but crowding may persist and price can keep rising.
Are all contracts funded every eight hours?⌄
No. Intervals may be one, four, or eight hours and can change. Check the current contract specification.
Open the funding-rate dashboard →