Coinbase International Exchange

How is the funding rate determined?

The funding rate is represented by the formula below:

TWAP (Premium, 1 hour, 1 second) *ɑ) + (Previous Funding Rate) * (1-ɑ) 

Where 

Premium = (Mark price - Index Price) / Index Price / 24

ɑ = smooth / (n + 1); 

smooth = 6;

n = number of previous periods used = 7 (funding interval)