#MYX This target is a typical case of double killing for both bulls and bears, which is difficult for most people to handle.
I found that many people in the square do not even understand what the funding rate is, yet they blindly open positions.
In simple terms:
When the funding rate is negative, short positions have to pay a 'fee' to long positions;
When the funding rate is positive, long positions have to pay a 'fee' to short positions.
On Binance, the maximum contract rate is usually 2% per cycle, and the cycle typically ranges from 1 to 8 hours.
However, $MYX has a cycle of only 1 hour.
If the negative rate stays at the maximum for a day, that would be 24 × 2% = 48%.
In other words, opening a short position of 1000U would incur a funding fee of 480U in just one day!
The clever you might think: Since short positions have to pay a fee, why not just open a long position instead?
The problem is: Now $MYX is already at a high level. While going long may benefit from the funding rate, the risk to the principal is much greater, and it may lead to losses at any moment.
Conclusion:
The risk of $MYX is extremely high.