What are funding rates for crypto derivatives?
Perpetual contracts don't expire, but holding a position may involve a recurring cost.
You'll see the funding rate and a countdown timer on every trading screen, just above the order book.
Funding rate and countdown timer on the trading screen
Tap the rate to see the details. The popup shows funding rate, whether it is a 4-hour or 8-hour rate, the annualised equivalent, which side pays funding, and the estimated funding fee for the position.
The Funding rate pop-up in the Trading page
Expand the "What is a funding rate?" part of the formula. Funding is calculated using the position value and funding rate, and is paid or received at the applicable interval. OKX facilitates this exchange between users and it's not a platform fee.
"What is a funding rate?" part in the Funding rate pop-up
Select check funding rate history to see how rates have moved. Funding rates change with market conditions, so you should review them before opening a position and consider their effect on holding costs.Check funding rate history button in the Funding rate pop-up
Funding payments occur at regular intervals while a position remains open. The longer a position is held, the greater the impact funding may have. Derivatives involve a significant risk of loss and may not be suitable for all investors. This information is general in nature and isn't investment advice.
Disclaimer: Information about: digital currency exchange services is prepared by OKX Australia Pty Ltd (ABN 22 636 269 040); derivatives and margin by OKX Australia Financial Pty Ltd (ABN 14 145 724 509, AFSL 379035); and other products and services by the relevant OKX entities which offer them (see Terms of Service). This information is general in nature and does not take into account your objectives, financial situation or needs. You should do your own research and obtain professional advice, including to ensure you understand the risks associated with these products, before you make a decision about them. Digital assets are volatile and carry a high level of risk; you may lose some or all of your investment. Crypto derivatives carry significant risk. You could lose all of the USDT deposited in your trading account. Past performance is not indicative of future performance. Read our Terms of Service and Risk Disclosure Statement for more information. For crypto derivatives for retail clients, read the Product Disclosure Statement (PDS) and Financial Services Guide (FSG), and refer to the Target Market Determination (TMD) on our website.