TODO: Spanish translation
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Funding Rate is a periodic payment exchanged between holders of long and short positions. The funding mechanism maintains alignment between the perpetual contract price and the market price of the underlying asset.
💡 How it works:
- If funding is positive — long position holders pay short position holders
- If funding is negative — short position holders pay long position holders
- Upscale uses a fixed funding rate
🪙 Funding for Crypto
Unlike dynamic funding on other exchanges, Upscale uses a fixed funding fee model for cryptocurrencies.
Crypto Funding Parameters:
- Rate: 0.03%
- Frequency: every 8 hours
- Schedule: 00:00, 08:00, 16:00 UTC
📌 Funding is charged proportionally to your position size and is deducted directly from your margin account.
🕒 Schedule Example:
- 00:00 UTC — funding charge
- 08:00 UTC — funding charge
- 16:00 UTC — funding charge
🏛️ Funding for RWA (Forex, Commodity, Indices)
RWA assets have a different funding system from cryptocurrencies with daily accrual.
RWA Funding Parameters:
- Rate: -0.048% on regular days
- Wednesday Rate: -0.144% (triple funding)
- Frequency: once per day
- Accrual Time: 21:00 UTC
⚠️ Important Features:
Triple Funding on Wednesdays: On Wednesdays, the funding rate triples to -0.144%, compensating for weekend days when markets are closed.
Funding During Market Pauses: When RWA markets are paused (from Friday 21:00 UTC to Monday 00:00 UTC), funding is not charged on open positions.
💼 Impact on Strategies
Short-term Trading
If you hold positions for a few hours and close them before funding accrual time, this fee will not affect you.
Medium-term and Long-term Trading
When holding positions through multiple funding cycles, it's important to account for accumulated costs:
Calculation Example for Crypto:
- Position: $10,000
- Holding: 3 days (9 funding cycles)
- Cost: $10,000 × 0.03% × 9 = $27
Calculation Example for RWA (Forex/Commodity):
- Position: $10,000
- Holding: Monday-Friday (5 days)
- Wednesday included (triple funding)
- Cost: $10,000 × (-0.048% × 4 + -0.144% × 1) = -$33.60
📊 Tracking Funding
Information about upcoming funding accruals is displayed in the trading terminal:
- Time until next accrual
- Current funding rate
- Estimated amount for your open positions
💡 Tip: Account for funding when planning long-term positions — it can significantly impact your trade's final profitability.