🚨 Attention: NEWT/USDT High Funding Fees Alert
What’s happening:
Funding fees are periodic interest payments between holders of perpetual futures contracts (e.g., NEWT/USDT). These are used to align perpetual prices with spot prices
binance.com
Why the rise matters:
Long-holders pay shorts: When funding rates spike (positive), long positions—anticipating price increases—pay hefty fees every 8 hours.
Eats into gains: Even if NEWT’s price rises, funding fees can significantly cut net profits, especially for leveraged traders.
Indicative of sentiment: A high funding rate often signifies exuberant bullish sentiment—but it could reverse quickly
Potential risks for NEWT traders:
Fee drag: At, say, a 0.1% funding rate per 8-hour window, holding a $10,000 position costs $30/day—quite steep for thin-volume tokens.
Volatility trap: If funding flips negative, long-holders suddenly receive funding—but short positions then start eating fees.
Unexpected cycles: Funding rates reset every 8 hours (often at 00:00, 08:00, and 16:00 UTC), which can disrupt strategy .
