Funding Rate

What is the funding rate?

In perpetual futures contracts, the funding rate is a periodic payment exchanged between traders holding long and short positions. This mechanism helps ensure that the contract price stays close to the underlying spot market price.

• Positive funding rate: When the contract price is above the mark price, long traders pay short traders.

• Negative funding rate: When the contract price is below the mark price, short traders pay long traders.

Funding Amount

The funding amount is how much you will actually pay or receive based on the funding rate.

Funding amount = Position size × Mark price × Funding rate

This value is transferred between long and short traders depending on the direction of the funding rate. FlowX does not charge or receive funding — it is a peer-to-peer transfer.