What Is a Funding Fee?
The funding fee is a recurring payment exchanged directly between traders holding long (buy) and short (sell) positions in perpetual futures contracts. It keeps the perpetual contract price aligned with the underlying spot market price.
When the funding rate is positive → long position holders pay short position holders
When the funding rate is negative → short position holders pay long position holders
Pionex does not collect any portion of funding fees. All fees go directly between traders.
App:
Web:
How Is the Funding Fee Calculated?
Formula:
Funding Fee = Position Size × Mark Price × Funding Rate
Example: You hold a long position of 5 BTC, the Mark Price at settlement is 20,000 USDT, and the funding rate is 0.01%.
5 × 20,000 × 0.01% = 10 USDT charged
If you hold a short position of the same size, you would receive 10 USDT instead.
Important: Funding fees are calculated on your total position value (notional value), not just your initial margin. For example, using 100 USDT with 100x leverage gives a position value of 10,000 USDT — a 0.01% rate means you pay 1 USDT per settlement, which equals 1% of your actual margin.
When Are Funding Fees Settled? How Often?
Settlement frequency depends on the trading pair and current market conditions:
Scenario | Settlement Interval | Settlement Times (UTC) |
Major coins (BTC, ETH, etc.) | Every 8 hours | 00:00 / 08:00 / 16:00 |
High-volatility or trending coins | Every 4 hours | 6 times per day |
Extreme market movement | Every 1 hour | 24 times per day |
You can always check the live countdown timer on the trading interface to see when the next settlement occurs.
Do I Have to Pay If I Just Opened or Closed a Position?
You only pay or receive a funding fee if you hold the position at the exact moment of settlement.
Closed your position before settlement → no fee
Opened your position after settlement → no fee
Note on timing: Due to system processing, there may be a deviation of up to ±1 minute around the scheduled settlement time. For example, if settlement is at 08:00:00 UTC:
Closing at 08:00:03 UTC → you may not be charged/received (settlement may not have processed yet)
Opening at 08:00:59 UTC → you may still be charged (settlement window may still be active)
Always refer to the actual settlement time shown in your transaction history.
Why is my funding fee so high / expensive?
Funding fees are based on your total position value, not your margin deposit.
Example: 100 USDT margin at 100x leverage = 10,000 USDT position value. At a 0.01% rate, you pay 1 USDT — which is 1% of your actual margin per settlement. High leverage amplifies the impact of funding fees significantly.
Also asked as: "Why am I paying so much in funding fees?" / "The fee is too large"
Why am I being charged every hour?
During periods of extreme market volatility, Pionex may temporarily increase the settlement frequency from every 8 hours to every 1 hour. This is an industry-standard practice designed to reduce the price gap between the futures contract and the spot market.
You can verify the current settlement frequency by checking the countdown timer on the trading interface.
Also asked as: "Why is the funding fee charged so frequently?" / "Funding fee keeps coming every hour"
What determines whether the funding rate is positive or negative?
The funding rate reflects the imbalance between buyers and sellers in the market:
More traders are long (buying) and the contract trades above spot price → rate is typically positive (longs pay shorts)
More traders are short (selling) and the contract trades below spot price → rate is typically negative (shorts pay longs)
The rate is not set by Pionex — it is determined by real-time market conditions.
Also asked as: "Why is the funding rate positive?" / "Why is the rate so high?"
Are funding fees hidden charges?
No. Funding fees are fully transparent:
All transactions are recorded in your Transaction History
The funding rate and next settlement time are visible on the trading interface at all times
Also asked as: "Did Pionex charge me secretly?" / "I didn't know about this fee"
Where can I check the current funding rate?
You can view live funding rates for all trading pairs at: https://www.pionex.com/en/market/funding-rate
The rate and settlement countdown are also shown directly on the trading interface while you have a position open.
Why do some trading pairs have significantly negative funding rates?
When the market shows a strong one-sided sentiment — for example, when a large number of traders pile into short positions — it creates a severe imbalance between longs and shorts. The funding rate mechanism responds by adjusting so that short position holders pay long position holders, pushing the contract price back toward the spot price. If short-side demand remains persistently high, the funding rate can widen into a significantly negative value.
This typically occurs in the following situations:
A newly listed coin launches with heavily divided market sentiment
Major bearish news drives a rapid surge in short-side pressure
During sharp market reversals when positions become concentrated on one side
If you hold a long position, you will receive funding fees during a negative rate period. If you hold a short position, you will be charged fees.
Also asked as: "Why is the funding rate negative?" / "What does a negative funding rate mean?" / "Is it normal for the rate to drop so much?"
Q: Does Pionex keep any of the funding fees?
No. Funding fees are exchanged directly between traders. Pionex does not collect or retain any portion of funding fees.
Also asked as: "Does Pionex profit from funding fees?"