What is funding?
Funding is a regular payment between traders that keeps a perpetual's price aligned with the underlying asset it tracks.
When the perpetual's price drifts from the underlying asset, funding corrects it. Traders holding positions in the direction of the drift pay traders on the other side, which naturally pushes the price back in line.
If the funding rate is positive, Price up positions pay Price down positions. If it is negative, Price down positions pay Price up positions.
Important Note:
Funding is not a fee charged by Crypto.com. It flows directly between traders holding opposite positions. If your position is open at a funding time, the payment applies automatically.
When is funding paid?
Funding is settled three times a day, at 00:00, 08:00, and 16:00 UTC.
Only positions open at those moments are affected. If you open and close a position between two funding settlement times, you neither pay nor receive anything.
How much do I pay or receive?
The rate is shown as an amount per eight-hour interval. It applies to your position size, not the margin you committed.
Example:
You hold a $300 position with a $100 margin at 3x leverage. The funding rate for the interval is 0.01%, running against you.
At that funding time, you pay 0.01% of $300 = $0.03
That's three times a day, so $0.09 per day
Over 30 days, that adds up to $2.70 against a $100 margin
The rate changes each interval, so this is an illustration, not a forecast. Each payment is small, but they add up over time.
How does funding affect my position?
Funding is settled against the margin balance of the position it applies to.
When you pay funding, your margin balance falls
When you receive funding, your margin balance rises
Your margin balance is what keeps a position open, so paying funding moves you closer to liquidation, even if the price has not moved. Your liquidation price also shifts slightly at each funding time.
The health bar on your position reflects this. See the Margin and Liquidation Section for details.
How do I find my funding payments?
Funding payments appear under History as Funding Fee Paid or Funding Fee Received. Payments are recorded per position, so you can see which one each payment applies to.