No. 08Perps & funding
Funding rate calculator.
Turn an 8-hour funding rate into the real annual cost of holding a leveraged perp.
Annualized APR
10.95%
Total funding cost
3 USDT
Per 8h interval
1 USDT
Method
From an 8-hour rate to an annual cost
A funding rate is quoted per interval. With three 8-hour intervals a day, the annualized carry is APR = rate x 3 x 365.
The cost of holding scales with how many intervals you're in the position: a 0.01% rate on $10,000 is $1 every 8 hours, or about $1,095 a year. Funding is charged on notional, so leverage multiplies its bite on your margin.
Questions
Frequently asked
- How often is funding charged?
- On most venues every 8 hours, three times a day, though some use 1h or 4h intervals. This calculator assumes the common 8-hour schedule, so the APR is the per-interval rate times 3 times 365.
- Who pays funding - longs or shorts?
- When the rate is positive, longs pay shorts; when negative, shorts pay longs. It is a peer-to-peer transfer that nudges the perpetual price back toward spot, not a fee paid to the exchange.
- Does funding compound?
- Real funding is charged on notional each interval and can compound as your position value changes. This calculator models it as a simple linear carry cost, a close approximation for short-to-medium horizons.
- Why does funding matter so much with leverage?
- Funding is charged on notional, not margin. At 10x leverage a 0.01% interval rate costs 0.1% of your margin every 8 hours - funding alone can erase a thin edge before price even moves.
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