In perpetual contracts, in addition to trading fees, there is a funding rate, but the funding rate is not a fixed value; it is determined by the difference in the market long-short ratio.

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

Funding rate calculation: Position value × Funding rate

When the funding rate is positive,

long positions are deducted the funding rate based on position value, while short positions receive the funding rate based on position value.

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

The funding rate is settled three times a day at 00:00, 08:00, and 16:00 (only at the settlement points will positions incur or be deducted). Note: For some smaller cryptocurrencies, the funding fee is calculated hourly.