Coinbase International Exchange

What is the funding rate?

The funding rate represents the difference between the mark price of the perpetual futures market and the index price, which is equivalent to the spot market of the underlying asset. The funding rate ensures that the funding mechanism aligns the futures market price with the index price.

When the funding rate is positive, users who have long positions pay a funding fee to users who have short positions. When the funding rate is negative, users who have short positions pay a fee to users who have long positions.

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