To promote funding rate magnitude in line with wider exchange venues, improve arbitrage incentives, and provide predictability of funding settlement rate for more stable position management, the Crypto.com Exchange will launch a new funding rate mechanism on 31 July 2023, 08:00 UTC.

Key Changes

ChangeCurrentNew
Funding Rate IntervalPublished every hour

Funding Rate = Average Premium Rate / 24
Published every four hours* 

Funding Rate = Average Premium Rate
Funding SettlementHourly settlement

At the end of the hour, Funding Payment = Funding Rate * Position Value (USD)
Hourly settlement

At the end of each of the next four hours, Funding Payment = Funding Rate / 4 * Position Value (USD)

* Funding Rate Calculation Intervals: 00:00 – 04:00, 04:00 – 08:00, 08:00 – 12:00, 12:00 – 16:00, 16:00 – 20:00, 20:00 – 00:00 UTC

Illustrated Changes

From 31 July 2023, 08:00 UTC, users eligible to trade derivatives will see following indicators in the Trading page:

Example

Assuming the session settlement time is 02:00 UTC, a trader with an open position on BTCUSD Perpetuals should interpret the funding indicators as follows:

API Additions

The following Market Data Websocket Subscriptions will be also available for Crypto.com Exchange API users:

Please refer to the API documentation for full details.

What are Funding Rates?

Funding Payment is a mechanism used in perpetual futures to encourage the perpetual contract’s mark price to align with the underlying index’s price.

When Funding Rates are positive, long position holders pay funding to the short position holders. When Funding Rates are negative, short position holders pay funding to the long position holders.

For more comprehensive information on funding payments, calculations and settlement time, please visit our FAQ page here.

Funding Rate Adjustments in the Crypto.com Exchange

Funding rate calculations will be adjusted to improve the trading experience for users

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