Funding is a periodic payment between traders in perpetual contracts. It keeps the contract price aligned with the price of its underlying asset.
When funding happens
On most Roxom contracts, funding happens every 8 hours at:- 00:00 UTC
- 08:00 UTC
- 16:00 UTC
Who pays whom?
| Funding Rate | Who Pays | Who Receives |
|---|---|---|
| Positive | Long positions | Short positions |
| Negative | Short positions | Long positions |
If you close your position before the funding timestamp, you don’t pay or receive anything.
How funding rate is determined
The funding rate is based on:- Premium/discount between the perpetual price and the underlying’s index price.
- Interest rate component (small fixed adjustment).
How funding payments are calculated for your position
Funding Payment = Position Notional Value × Funding RateTips to manage funding costs
- Short-term trades: If you don’t want to pay funding, close before the timestamp.
- Watch the rate: If it’s unusually high, it means many traders are on one side of the market.
- Plan for multiple intervals: Holding for several days means multiple funding payments or receipts. See live funding rates in the Funding Rate section of our trading interface.