Funding rates are periodic payments exchanged between long and short traders to keep the price of perpetual contracts in line with the spot market. Understanding funding is key to advanced perps trading on Dexari.

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What are funding rates?

Funding rates are small fees paid every hour between traders holding long and short positions on perps. The rate is designed to keep the perps price close to the underlying spot price:
  • If the perps price is above spot, longs pay shorts.
  • If the perps price is below spot, shorts pay longs.
No fees are collected by Dexari—funding is peer-to-peer.

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How are funding rates calculated?

Funding rates are based on two components:
  • Interest rate: A fixed rate (0.01% every 8 hours) that reflects the cost of holding USD vs. crypto.
  • Premium: The difference between the perps price and the spot price (oracle). If perps trade at a premium, the funding rate is positive; if at a discount, it’s negative.
The funding rate is paid every hour, and the amount you pay or receive depends on your position size and the current rate.

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Viewing funding rates in the app

You can view current and historical funding rates for any perps market:
  • Go to the Trade tab and select your perps market.
  • Tap the Info tab to see 1h, 8h, and 1y funding rates.
  • The next funding payment countdown and rate are always visible before you place a trade.
Funding rates can change quickly in volatile markets. Always check the current rate before opening or holding a large position.

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Advanced: Earning funding and basis trades

  • Earning funding: If you hold the side that receives funding (e.g., short when funding is positive), you can earn a steady yield—especially when the market is crowded on one side.
  • Basis trades: Advanced traders may go long perps and short spot (or vice versa) to capture the funding rate difference, aiming for delta-neutral exposure.
Funding payments are a powerful tool for advanced traders, but rates can flip quickly. Monitor funding, manage your risk, and understand the mechanics before using these strategies.