Funding Fee Calculation (0827 Done)
Perpetual Contract
Funding Rate
Funding fees are a key mechanism on XT designed to keep perpetual futures prices closely aligned with global spot prices. They function similarly to interest in leveraged spot trading.
On XT:
- Funding fees are exchanged between long and short positions at each funding interval*. For example, with an 8-hour interval, fees are generated at 08:00, 12:00, and 16:00 UTC.
- If the funding rate is positive, long positions pay shorts; If negative, shorts pay longs.
- Fees are applied only to positions held at the funding timestamp: 12:00, 8:00, and 16:00 UTC.
- Positions closed before a funding timestamp incur no funding fees.
Funding fees are deducted from the trader’s available balance. If insufficient, fees are taken from the position margin. Reduced margin may move the liquidation price closer to the mark price, increasing liquidation risk.
If the position margin is insufficient to cover the funding fee, the margin may show as negative. Liquidation may not occur if unrealized profit supports the position. It is recommended to add available balance to reduce risk.
Each trading pair has independent funding intervals and rate limits. During high market volatility, XT may temporarily adjust funding rate caps to keep futures prices within a reasonable range. Please refer to this article for current intervals and limits.
Disclaimer: Funding fee settlements are complex and the system will take a few seconds to process across all traders. Opening or closing a position within ±5 seconds of a funding timestamp does not guarantee avoidance or collection of funding fees. XT will not provide compensation for such cases, as counterparties will incur or receive fees accordingly.
How to Calculate Funding Fees
USDT Futures
Taking the screenshot above as an example, longs need to pay a funding fee of 0.0058% to shorts.
Funding Fee Calculation:
Funding Fee=Position Value×Funding Rate
Position Value=Futures Quantity×Mark Price
Example: Trader A holds 10 BTC futures (long) at a mark price of 8,000 USDT, with a funding rate of 0.01%.
Position Value: 10 × 8,000 = 80,000 USDT
Funding Fee: 80,000 × 0.01% = 8 USDT
Since the funding rate (0.01％) is positive, the long position pays the short. Trader A pays 8 USDT, and the short receives 8 USDT.
Inverse Futures Trade
Funding Fee Calculation:
Funding Fee=Position Value×Funding Rate
Position Value=Futures Quantity ÷ Mark Price
Example: Trader A holds 10,000 BTCUSD futures (long) at a mark price of 8,000 USD, with a funding rate of 0.01%.
Position Value: 10,000 ÷ 8,000 = 1.25 BTC
Funding Fee: 1.25 × 0.01% = 0.000125 BTC
With a positive funding rate (0.01%), the long pays the short. Trader A pays 0.000125 BTC, and the short receives 0.000125 BTC.
How to Check Your Funding Fee Records
Funding fees are recorded in your Funding History:
Go to [Trade History] → [Funding Records] to view funding rates and fees paid. Please note that you have paid funding fees, while a negative value means you are receiving funding fees.
Derivatives asset flow shows all asset changes in your derivatives account, including funding columns and fees for each interval.