Funding Rate – Help Center

I. Introduction to Funding Fees

Funding fees are one of the core mechanisms of contract trading, ensuring that the contract price is closely linked to the underlying asset price through the regular exchange of funding fees between long and short positions. The 3EX platform does not charge any funding fees; funding fees are exchanged between users.

II. Funding Fee Explanation

Funding fees are generated every 8 hours, at 08:00, 16:00, and 24:00 (UTC). Users holding positions during these three time periods need to pay or receive funding fees, with the actual collection time subject to the order of settlement and processing speed. Traders should base their calculations on the actual collection time. If a position is closed before fees are collected, no funding fees need to be paid. To provide a better user experience, the 3EX platform does not pause trading during the funding fee collection period. Therefore, there may be delays in the collection time for funding fees.

Funding fees are calculated based on the position value multiplied by the current funding rate. When the funding rate is positive, long position holders need to pay funding fees, while short position holders receive funding fees. When the funding rate is negative, short position holders need to pay funding fees, while long position holders receive funding fees.

Funding fees are deducted from the user's fixed margin for the position, and can be deducted up to a margin rate equal to the maintenance margin rate with a certain remaining percentage. The actual funding fees a user can receive depend on the total amount deducted from the counterparty's account by the system.

III. Funding Fee Calculation

User funding fee calculation formula:

Funding Fee = Funding Rate x Position Value

Position value is unrelated to the user's leverage and is not calculated based on the margin allocated by the user for the position.

Funding rate calculation formula:

Funding Rate = Funding Rate * Settlement Period H / 8H

Funding Rate = clamp(Average Premium Index + clamp(Interest Rate - Average Premium Index, Premium Deviation Lower Limit, Premium Deviation Upper Limit), Funding Rate Lower Limit, Funding Rate Upper Limit)

Average Premium Index = sum of the last 60 (Premium Index per minute) / 60

Premium Index = (max(0, Depth-Weighted Buy Price - Fair Price) - max(0, Fair Price - Depth-Weighted Sell Price)) / Index Price + Funding Rate Base Spread Rate

Depth-Weighted Buy Price = Order Book Depth / sum of ask orders (quantity * price)

Depth-Weighted Sell Price = sum of ask orders (quantity * price) / Order Book Depth

Fair Price = Index Price * (1 + Funding Rate Base Spread Rate)

Acquiring Funding Rate Base Spread Rate = Previous Funding Rate * Time Distance to the Next Settlement Time / Funding Fee Settlement Cycle

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