What is Funding APR?
Funding APRâ
Funding APR is the annualized rate at which longs pay shorts, or if the rate is negative, shorts pay longs.
Gem Wallet annualizes the hourly funding value by multiplying it by 24 hours and 365 days, then displays the result as a percentage.
What Positive and Negative Meanâ
A positive Funding APR means long positions pay short positions. A negative Funding APR means short positions pay long positions.
Funding is not a Gem Wallet fee. It is a peer-to-peer transfer between traders that helps push perpetual contract prices toward the spot price.