Detailed Explanation
How It Works: Most exchanges calculate funding every 8 hours (some hourly) based on the gap between the perpetual price and an index of spot prices. Holders of positions at the snapshot pay or receive funding proportional to their position size; the exchange itself does not take this fee.
FAQs:
Who pays funding? The side of the market with the dominant pressure pays the other side; the exchange does not collect it.
Can funding flip mid-trade? Yes, and frequently does during volatile markets.
