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Funding keeps the perpetual price aligned with the Index. It is disabled during Market Close when the Index may be stale or manipulable.

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Activation

SessionFunding Active
Reference OpenYes
Weekday OvernightNo
WeekendNo
Reference DisruptedNo
Underlying HaltedNo
Rationale: Removes incentives to manipulate mark/index during closures.

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Calculation

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Premium

Premium = (Mark - Index) / Index
PremiumEMA = EMA_T(Premium)   // T = 5–15 minutes

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Funding Rate

FR_hour = clamp(PremiumEMA, -FR_cap, +FR_cap)
Default FR_cap: 0.1% to 0.5% per hour

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Payment

Payment = PositionNotional * FR_hour * interval_hours
Sign convention:
  • Premium > 0: longs pay shorts
  • Premium < 0: shorts pay longs

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Intervals

TypeDescription
ContinuousAccrues every second, smoother for traders
DiscreteFixed intervals (1h, 4h, 8h), simpler to implement

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Session Transitions

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Resuming Funding (Close → Open)

  1. Wait for Index to stabilize (~1-2 minutes)
  2. Reset PremiumEMA to current premium
  3. Resume funding calculations

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Pausing Funding (Open → Close)

  1. Compute final payment at transition
  2. Set funding_rate = 0
  3. Broadcast update
Use a hysteresis timer (60s) to prevent on/off oscillation from feed flapping.

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API Response

{
  "instrument": "NVDA-PERP",
  "funding_active": true,
  "funding_rate_current": 0.000125,
  "premium_current": 0.0023,
  "premium_ema": 0.0018,
  "next_payment_timestamp": 1234571490,
  "session_state": "OPEN"
}

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Parameters

ParameterDefault
EMA window5-15 min
FR cap0.5% / hour
Funding intervalContinuous or 8h
Hysteresis timer60s