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What is Funding Payment?

Funding Payment​

Funding payments are periodic payments between perpetual traders. They help keep the perpetual contract price close to the underlying asset's spot price.

Positive funding means long positions pay short positions. Negative funding means short positions pay long positions.

How It Affects a Position​

Funding can increase or decrease your position margin over time, depending on your position direction and whether the funding rate is positive or negative.

Funding is not a Gem Wallet fee. It is a peer-to-peer transfer between traders.