Funding Rates

Perpetual futures have no expiry, so a funding mechanism keeps their price anchored to the underlying market. Funding is a recurring payment exchanged directly between traders — it is not a fee charged by 7.Exchange.

How it works

At each funding interval, the funding rate is compared against the gap between the perpetual’s price and the underlying index price:

• When the perp trades above the index, the rate is positive and longs pay shorts.
• When the perp trades below the index, the rate is negative and shorts pay longs.

The payment is proportional to your position size, so a larger position pays or receives more. You only exchange funding on positions you hold at the funding timestamp — if you open and close between intervals, you pay none.

What this means for you

• Holding a position on the crowded side of the market has an ongoing cost.
• Holding the opposite side can earn funding over time.
• Funding is settled in USDC and reflected in your account balance automatically.

The current and predicted funding rate for each market is shown in the trading interface before you open a position.