Does anyone still not understand the funding rate?

📌 The funding fees determine the periodic payments made between perpetual contract holders. These fees paid or received by traders are called funding fees.

📌 If the price of the perpetual contract is higher than the spot price of the underlying asset at the time of funding fee settlement, the longs need to pay the funding fees to the shorts. Conversely, if the spot price is higher than the contract price, the shorts will pay the funding fees to the longs.

📌 Higher funding fees can affect traders' performance by reducing profits or increasing losses, which may lead to an increased risk of forced liquidation.

💊 This is a fair game.