$BNB Funding Rate Explanation

The funding rate refers to the price difference between the perpetual contract market price and the spot price.

In addition to trading fees, perpetual contracts also have a funding rate, which is not a fixed value but is determined by the market's long-short ratio difference.

The main purpose of the funding rate is to balance the market's long-short ratio.

Funding rate calculation: Position value × Funding rate.

When the funding rate is positive,

Long positions will have the funding rate deducted from the position value, while short positions will receive the funding rate based on the position value.

Conversely, when the funding rate is negative, long positions receive money, and short positions will have money deducted.

The funding rate is settled three times a day at 00:00, 08:00, and 16:00 (only at settlement times will positions incur or receive the funding rate).