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What is Funding?

Funding​

Funding determines the cost of holding a perpetual position. It is calculated hourly and helps maintain price equilibrium between the perpetual contract and the underlying asset's spot price.

Funding connects two related concepts:

  • Funding APR annualizes the funding rate shown for a market.
  • Funding Payment is the payment exchanged between long and short traders.

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