Funding Rate 

The periodic cash flow that equilibrates perpetual futures (unlike traditional futures) with the underlying spot index. The funding rate can be positive or negative, depending on market conditions. A positive rate – perpetual trading at a premium (contango) – requires longs to pay shorts; a negative rate – perpetual at a discount (backwardation) – requires shorts to pay longs.

The funding rate is typically calculated as Funding Rate = Interest Rate + Premium Index, where:

• Interest Rate is a fixed component reflecting the cost of capital, usually set by the exchange
• Premium Index represents the difference between the perpetual contract price and the spot price.

Some exchanges may apply proprietary adjustments to this formula.

On the chart, funding rate data is available as the "Funding Rate" indicator in the "Financials" tab.

Values are presented in percentages.

"Funding Rate" is available for crypto derivatives of the following exchanges: BYBIT, BINANCE.