What a funding rate represents
The periodic payment between perpetual contract positions follows venue-specific rules and may change sign before the next settlement.
- current and projected funding rate;
- time until the next settlement;
- spot versus perpetual basis;
- liquidity and opening or closing fees.
Market neutrality still needs active control
A hedged structure can lose money through basis changes, partial fills, position-size mismatch, liquidation, or an outage at one venue.
Updated: 2026-07-18
Frequently asked questions
Is the funding rate known in advance?
Venues publish current or projected values, but the final rate can change before settlement.
Is a funding strategy risk-free?
No. Rate changes, liquidation, execution, operational, and counterparty risks remain.