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Q » What is perpetual futures funding fee mechanism?

Michael

02 Nov, 2025

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A » Perpetual futures funding fees are periodic payments exchanged between buyers and sellers to maintain the contract price close to the underlying asset's spot price. Positive funding rates mean longs pay shorts, while negative rates indicate the opposite. This mechanism helps stabilize the market, as it incentivizes traders to align their positions with market trends, ensuring that perpetual contracts do not deviate significantly from the spot price.

David

03 Nov, 2025

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A »The perpetual futures funding fee mechanism is a system that ensures the price of a perpetual futures contract stays close to the underlying asset's spot price. It involves periodic payments between long and short positions based on the difference between the contract price and the spot price, incentivizing traders to keep the contract price aligned with the spot price.

James

03 Nov, 2025

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