Funding Rate / Fee

Funding Rate is a periodic payment exchanged between Long and Short traders to help keep the perpetual market price close to the Index price.

Funding is not paid to the exchange. It is exchanged directly between traders.

You can check detailed funding rate information for any perpetual contract directly from the trading page.

To access it:

1. Open a perpetual trading pair.
2. On the top-right section of the trading page, tap the Funding Rate or Funding Info button.

Inside the Funding Rate section, you can view:

• Current funding rate
• Funding settlement interval/timeframe
• Next funding countdown
• Historical funding rate records
• Funding rate percentage history
• Funding rate movement chart

The funding chart helps users monitor how funding sentiment changes over time between Long and Short positions.

Different perpetual contracts can have different funding settlement intervals depending on market volatility and contract configuration.

Positive Funding Rate

When funding rate is positive:

• Long positions pay
• Short positions receive

Usually happens when market sentiment is bullish.

Negative Funding Rate

When funding rate is negative:

• Shorts pay
• Longs receive

Usually happens when market sentiment is bearish.

Funding Rate Calculation

Funding rate is mainly derived from the premium difference between perpetual market price and index price.

General Formula:

Funding Rate = Premium Index + Interest Rate

Note: The interest rate component used in funding rate calculation is fixed at 0.01%.

Funding Fee Calculation

Formula:

Funding Fee = Position Size × Funding Rate

Example

• Position Size: 10,000 USDC
• Funding Rate: 0.01%

Calculation:

10,000 × 0.0001 = 1 USDC

Result:

• Long trader pays 1 USDC
• Short trader receives 1 USDC

Funding Rate Settlement Model

The funding rate system in TTT uses a margin-to-margin settlement model.

At each funding interval:

• The paying side (Longs or Shorts) will have the funding fee deducted directly from their position margin (collateral)
• The receiving side will receive the funding payment directly into their position margin proportionally based on their position size

Funding fee calculation:

Funding Fee = Position Size × Funding Rate

Example

• Position Type: Short
• Position Size: 20,000 USDC
• Funding Rate: 0.03%

Funding fee:

20,000 × 0.03% = 6 USDC

If Shorts are the paying side:

• 6 USDC will be deducted from the position margin at the funding interval settlement time

If Shorts are the receiving side:

• 6 USDC will be added to the position margin

Because funding payments directly increase or decrease position margin, they also affect:

• Margin Ratio
• Maintenance Margin distance & liquidation