Perpetual contracts do not have an expiration or delivery date. To prevent the "latest transaction price" from deviating from the spot price, Venkate uses a "funding fee mechanism" to anchor the contract price to the spot price.
Perpetual contracts are settled every 8 hours at 16:00 (UTC), 00:00 (UTC), and 08:00 (UTC). Funding fees are generated at settlement, and only users holding positions at settlement need to pay or receive funding fees.
Traders can see the current market funding rate in the "Funding Rate" indicator column of the market header. Historical rates can be found in the funding rate history.
Funding Fee = Position Value x Funding Rate Position Value = Contract Quantity x Latest Price
Example:
Trader A holds a long position in 1 BTC contract with the latest BTCUSDT price at 60,000 USDT and a funding rate of 0.01%.
- Position Value: 1 x 60,000 = 60,000 USDT
- Funding Fee: 60,000 x 0.01% = 6 USDT
Since the funding rate is positive (0.01%), the long position holder must pay this fee to the short position holder. Hence, Trader A must pay 6 USDT, while the short position holder with the same contract quantity will receive 6 USDT.
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