Funding Fee Calculation
Trader A holds a long position of 10 BTC contracts and the Mark Price is 8,000 USDT at the funding timestamp with the current funding rate at 0.2%.
First, let’s calculate the Position Value:
Position Value = 10 * 8000 = 80000 USDT
→ Funding Fee = 80000 * 0.2% = 160 USDT
As the funding rate is positive (0.2%), the Long (Buy) position holders have to pay the Short (Sell) position holders. Hence, Trader A has to pay a funding fee of 160 USDT and a short position holder with the same quantity of contracts will receive 160 USDT.
Important notices and disclaimers
Funding is the primary mechanism to ensure ONUS Pro’s last traded price is always anchored to the global spot price. It is similar to the interest cost of holding contracts in spot margin-trading.
- The funding fee is exchanged directly between buyers and sellers at the end of every funding interval*. Using an 8 hour funding time interval as example funding will occur at 16:00 UTC, 00:00 UTC and 08:00 UTC.
- When the funding rate is positive, long position holders pay the short position holders. Likewise, when the funding rate is negative, short position holders pay the long position holders.
- Traders will only pay or receive funding fee if they hold a position at one of these times.
- If positions are entirely closed prior to the funding exchange then traders will not pay or receive funding fee.
- The funding fee charged will be deducted from trader's available balance. In the event where trader has no sufficient available balance, the funding fee will be deducted from the position margin and the liquidation price of the position will be more prone to the mark price. The risk of liquidation will increase.
* Every trading pair will have its own funding time interval and ONUS Pro may adjust the funding time interval based on live market situation when there is a significant price gap between Last traded price and Mark Price that without prior notice.
Due to the complexity of the funding fees settlement, the system may require a few seconds to complete all funding fee exchanges between buyers and sellers on the platform. Therefore, please take note that:
- Opening/closing a position within 1 minute after funding settlement (Based on live market conditions, numbers are subject to change without notice. We will try to keep the number as small as possible) before and after the funding timestamp does not guarantee its inclusion/exclusion to receive/payout funding fees in the stipulated funding timestamp.
Please take note that ONUS Pro will not offer any reimbursements for such incidents as the counterparty of the trades would have also received/paid out the funding fees.