Session End Time

Every 8 hours at 00:00 UTC, 08:00 UTC, and at 16:00 UTC daily.

Funding Payments

Funding Payments are calculated at the Session End Time to encourage the alignment of prices traded on the Exchange to the underlying index price.

Funding Calculations

Funding Payment (USD) = Funding Rate 8H * Position Size (USD)

  • Funding Rate 8H = 8-hour TWAP of 1 minute Funding Rate (from the previous funding interval)

  • Funding Rate = Maximum (0.05%, Premium Rate) + Minimum (-0.05%, Premium Rate)

  • Premium Rate = ((Mark Price - Index) / Index) * 100%

The settlement involves the following 3 steps:

  1. Funding settlement: When the Funding Rate is positive, long position holders pay funding to the short position holders; when the Funding Rate is negative, short position holders pay funding to the long position holders. The Funding Rate displayed on the screen is the actual rate for 8H without annualization.

  2. Rollover open positions: All open positions at the end of the trading session will be rolled over to the new session. The Average Price will be reset to the Mark Price as of the end of that session, and the Unrealized PnL will be realised. The Realised PnL, together with any Unrealised PnL occurred during the trading session, will be withdrawable after settlement.

  3. Uncovered loss settlement: If there is uncovered loss recorded during the trading session or after position roll over, the mechanisms in relation to the Insurance Fund and Socialised Loss Mechanism will be triggered. Under the Socialised Loss Mechanism, loss shared among the winners will be deducted from the Realized PnL immediately.

Using the formula to calculate the Funding Payment, an example is shown below:

Funding Payment (USD) = Funding Rate 8H * Position Size (USD)

Let’s assume at the time of settlement:

  • Initial Wallet Balance is 10,000 USD

  • Funding Rate is 0.034%

  • No open order

Before Settlement

After Settlement

Trader A

Before settlement time, the trader has already closed all positions and has realised a profit of 1,000 USD.

Wallet Balance: 11,000 USD

Withdrawable Balance: 10,000 USD

Trader’s withdrawable balance now includes the profits of 1,000 USD. No funding PnL as there is no open position.

Wallet Balance: 11,000 USD

Withdrawable Balance: 11,000 USD

Trader B

The trader has an open short position of 10,000 USD

In the 8 hour session, the trader has not yet closed the position, and has Unrealized PnL of -250 USD

Wallet Balance: 10,000 USD

Withdrawable Balance: 10,000 + -250 USD - Initial Margin required for the open position

Funding Payment = 0.034% * 10,000 = 3.4

Wallet Balance is now at 9,753.4 USD

  • = Wallet Balance + UPNL + Funding Payment

  • = 10,000 + -250 + 3.4

Trader’s Average Price of the position is reset to the Mark Price.

Wallet Balance: 9,753.4 USD

Withdrawable Balance: 9,753.4 USD - Initial Margin required for the open position

Trader C

The trader has an open long position of 15,000 USD

In the 8 hour session before settlement time, the trader has not yet closed the position, and has Unrealized PnL of 250 USD

Wallet Balance: 10,000 USD

Withdrawable Balance: 10,000 USD - Initial Margin required for the open position

Funding Payment = 0.034% * -15,000 = -5.1

Wallet Balance is now at 10,244.9 USD

  • = Wallet Balance + UPNL + Funding Payment

  • = 10,000 + 250 - 5.1

Trader’s Average Price of the position is reset to the Mark Price

Wallet Balance: 10244.9 USD

Withdrawable Balance: 10244.9 USD - Initial Margin required for the open position

If market circumstances require so, funding and settlement may be delayed at Crypto.com’s discretion.

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