> ## Documentation Index
> Fetch the complete documentation index at: https://docs.roxom.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How funding payments work (and when you pay or receive)

> Learn how funding payments work, when they occur, and who pays whom.

<Info>
  Funding is a periodic payment between traders in perpetual contracts. It keeps the contract price aligned with the price of its underlying asset.
</Info>

***

## When funding happens

On most Roxom contracts, funding happens **every 8 hours** at:

* 00:00 UTC
* 08:00 UTC
* 16:00 UTC

If you hold a position exactly at one of these timestamps, you will **either pay or receive BTC** depending on the funding rate at that moment. **Check each contract's exact funding interval** in the [**Our Contracts Offering & Specs**](https://docs.roxom.com/rulebook/our-contracts-offering-and-specs/gold-btc) section of our Rulebook.

***

## Who pays whom?

| Funding Rate | Who Pays        | Who Receives    |
| :----------- | :-------------- | :-------------- |
| **Positive** | Long positions  | Short positions |
| **Negative** | Short positions | Long positions  |

<Note>
  If you close your position before the funding timestamp, you don't pay or receive anything.
</Note>

***

## How funding rate is determined

The funding rate is based on:

1. **Premium or discount** between the perpetual price and the underlying’s index price.
2. **Interest rate component** (small fixed adjustment).

If the contract is trading above the index, the rate is positive (longs pay).

If it's below, the rate is negative (shorts pay). **Learn exactly how the funding rate is calculated** in the [**Funding Payments**](https://docs.roxom.com/rulebook/funding-payments/funding-payment-calculation) section of our Rulebook.

***

## How funding payments are calculated for your position

**Funding Payment = Position Notional Value × Funding Rate**

<Tip>
  **Example:**

  * Position size: 1 BTC notional
  * Funding rate: +0.05%
  * You are long at the timestamp → You pay 0.0005 BTC to the short side.
</Tip>

***

## Tips 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**](https://docs.roxom.com/rulebook/funding-payments/funding-rate-calculation) section of our trading interface.

***

<Warning>
  This content is for informational purposes only and does not constitute investment advice. Trading digital assets involves significant risk, including the potential loss of your entire investment. Please review our [Risk Notice](/legal/risk-notice) before trading.
</Warning>

***

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