Funding rates (Funding Fees) are periodic payments between traders in the perpetual futures market.
Objective:
Keep the contract price close to the Spot market price.
How they work:
• If the rate is positive:
◦ Long positions pay Short positions.
• If the rate is negative:
◦ Short positions pay Long positions.
Characteristics:
They are calculated at certain intervals (for example, every 8 hours).
They are not charged by the exchange; they are paid between users.
Before opening a position, it is recommended to review the funding rate.