Perpetual Funding Rates Explained, with Cost Examples
Understand who pays funding, how holding time affects cost, and why funding is separate from maker and taker fees.
Funding is separate from execution fees
A perpetual contract has no fixed expiry. Funding payments help align the perpetual price with its reference price. Under the common sign convention, a positive rate means longs pay shorts; a negative rate reverses that direction. Check the product’s displayed convention and settlement rules.
Maker and taker fees are charged on fills. Funding relates to holding an open position through funding events. Opening and closing quickly may still incur execution fees even if no funding event occurs.
A simple funding estimate
For a $1,000 position and a funding rate of +0.01% per interval, one interval is approximately $0.10. Three intervals at the same rate and unchanged notional total $0.30: paid by a long and received by a short under the sign convention above.
The calculator uses a constant notional and rate for this estimate. Actual funding can vary each interval as prices, position size and rates change. Count the funding events you expect to cross; do not assume every venue uses an eight-hour interval.
Why a quoted annual rate can mislead
Annualizing a recent rate assumes that rate continues. It does not promise future income. A position opened to receive funding can still lose through price movement, fees or liquidation, and the funding direction can reverse.
Compare the possible funding receipt with the full trade: entry and exit fees, spread, slippage, collateral requirements and the risk of holding the position.
Read the actual records
Before trading, inspect the current market’s funding rate, interval and next settlement time. Afterward, reconcile the debits and credits shown in your position history. The current rate alone cannot reconstruct every past payment.
TRUE’s volume rebate applies to eligible trading fees, not automatically to funding. Review the fee schedule and your account’s rebate status separately.
Continue with a related guide
Updated 2026-09-17. Sources, examples and review approach.