Funding Rates
Funding keeps perpetual futures prices anchored to their underlying index prices. When funding is positive, longs pay shorts. When funding is negative, shorts pay longs. Funding is calculated and applied hourly.
Current and historical funding rates are shown in the trading interface and exposed through the Trading API. Funding parameters are market-specific and may change over time.
Market Parameters
Each perpetual market has funding parameters that define how the rate is calculated.
bidImpactSizeUsd
USD notional used to calculate the impact bid price from resting bids.
askImpactSizeUsd
USD notional used to calculate the impact ask price from resting asks.
baselineApr
Baseline funding component.
clampApr
Threshold below which the premium component is clamped to zero.
maxApr
Maximum absolute funding rate.
Although bidImpactSizeUsd and askImpactSizeUsd are two separate parameters, in practice they are both always equal.
APR parameters are configured as annualized values. The hourly values used in the funding calculation are derived as:
These values are part of the market economics. They help traders and market makers estimate expected funding from the live book and index price. The public product API exposes APR fields for each market. Impact sizes are also published below.
Current Funding Parameters
BTCUSD
60,000
60,000
10%
1%
200%
ETHUSD
35,000
35,000
10%
1%
200%
SOLUSD
5,000
5,000
10%
1%
95%
HYPEUSD
10,000
10,000
10%
1%
95%
SUIUSD
2,500
2,500
10%
1%
145%
XRPUSD
2,500
2,500
10%
1%
145%
AAVEUSD
2,500
2,500
10%
1%
145%
ENAUSD
2,500
2,500
10%
1%
145%
FARTCOINUSD
7,500
7,500
10%
1%
145%
PUMPUSD
5,000
5,000
10%
1%
145%
ZECUSD
5,000
5,000
10%
1%
200%
MONUSD
5,000
5,000
10%
1%
200%
XMRUSD
5,000
5,000
10%
1%
200%
LITUSD
5,000
5,000
10%
1%
200%
BERAUSD
5,000
5,000
10%
1%
200%
These values are provided for transparency and may be updated as market conditions change.
Basis Calculation
Funding starts by measuring whether the perpetual market is trading at a premium or discount to the index price. Ethereal uses Pyth Lazer as the external reference price source.
The system samples funding basis throughout each hour. The samples from the previous hour are averaged to produce the funding rate for that interval.
Impact Prices
Rather than comparing only the best bid and best ask, funding uses impact prices derived from the order book.
The impact bid and impact ask are calculated from the average execution price for a configured USD notional on each side of the book. Larger impact sizes make the calculation depend on deeper liquidity; smaller impact sizes make it more sensitive to top-of-book liquidity. If there is insufficient usable book data, a basis sample may be skipped for that market.
Basis Formula
The basis compares the index price to the impact bid/ask band:
If the index price is below the impact bid, basis is positive.
If the index price is above the impact ask, basis is negative.
If the index price is inside the impact bid/ask band, basis is zero.
Basis is expressed as a rate, not an absolute price difference.
Hourly Funding Rate
At the start of each hour, the sampled basis values from the previous hour are averaged and converted into an hourly funding rate.
The rate then passes through three market-specific adjustments:
Dead zone: small basis values around zero are clamped to zero, filtering noise from minor deviations.
Baseline rate: a small baseline rate is added. A positive baseline creates a slight bias toward longs paying shorts, which can help incentivize short liquidity provision.
Cap: the final rate is capped to limit extreme funding events.
For positive rates, longs pay shorts. For negative rates, shorts pay longs.
The baseline APR serves as a minimum funding cost and can change over time. Current baseline, clamp, and maximum APR values are listed in the market values table above and exposed by the Trading API through GET /v1/product.
The resulting hourly funding rate is then converted into a per-unit USD funding charge using the mark price:
Total funding applied to a position depends on the position size and side. Positive funding transfers value from longs to shorts. Negative funding transfers value from shorts to longs.
Funding charges are settled sequentially with other exchange actions. For example, if a funding charge is sequenced before a later trade, the funding charge is processed first.
Charge Retries & Edge Cases & Notes
Funding charges may occasionally fail to apply due to technical reasons. While rare, the exchange will retry the funding charge application for the first 15 seconds of the current hour. If all retry attempts fail, that hour's funding is discarded and not applied retroactively. This ensures the system can handle transient failures while maintaining operational integrity.
Funding is applied once per hour and settled sequentially with other exchange actions. If a funding charge belongs before a later trade in sequence, the funding charge is processed first.
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