Calculation of Funding Fees
Perpetual Contract
How to check the "Funding Rate"
What Are Funding Fees?
Perpetual futures lack an expiry or delivery date. To ensure the last traded price of the contract remains aligned with the spot market, XT employs a funding fee mechanism to maintain the contract's price in line with the spot price.
Perpetual futures settle funding every 8 hours at 16:00 UTC, 00:00 UTC, and 08:00 UTC.
Funding fees are applied only at settlement. If you do not hold a position at the settlement time, you won’t pay or receive funding fees.
How to Check the Funding Rate
You can view the current funding rate in the “Funding Rate” field at the top of the market page. Historical rates are available in the Funding Rate History section.
How the Funding Rate Is Calculated
Funding Rate = Avg. Premium Index + clamp((Interest Rate − Avg. Premium Index), −0.05%, 0.05%)
- Premium Index = [(Best Bid Price + Best Ask Price)÷2−Spot Index Price] ÷ Spot Index Price → calculated once per minute
- Avg. Premium Index = (1×Index₁ + 2×Index₂ + 3×Index₃ + … + n×Indexₙ) ÷ (1 + 2 + 3 + … + n)
- Index₁: the first premium index data point within the past N hours, where N is the funding interval. Total data points n = N × 60.
Note: The displayed funding rate reflects the estimated premium value over the previous 8 hours. For example, at 09:00 UTC, the rate uses premium data from 01:00 to 09:00 UTC, not just 08:00 to 09:00 UTC.
How Funding Fees Are Calculated
Funding Fee = Position Value × Funding Rate Position Value = Contract Quantity × Mark Price
Example
Trader A holds 1 BTC long position. The current mark price for BTCUSDT is 60,000 USDT, and the funding rate is 0.01%.
The Position Value = 1 × 60,000 = 60,000 USDT
So, the Funding Fee that the trader should pay is: 60,000 × 0.01% = 6 USDT
Since the funding rate is positive, long positions pay short positions. Therefore, Trader A (long) pays 6 USDT in funding to the short position holder.