In perpetual futures trading, there is no expiry date. To ensure the price of a perpetual contract stays close to the actual "Spot" market price, WOO X Pro uses a Funding Rate mechanism.
1. What is the Funding Rate?
The Funding Rate is a periodic payment made between Long and Short traders.
- Important: WOO X Pro does not charge a fee for funding. 100% of the payment goes directly from one set of traders to another.
How it works:
- Positive Funding Rate (+): Longs are paying Shorts. (The futures price is higher than the spot price).
- Negative Funding Rate (-): Shorts are paying Longs. (The futures price is lower than the spot price).
2. Settlement Schedule
Funding is settled every 8 hours at the following times:
- 00:00 UTC
- 08:00 UTC
- 16:00 UTC
💡 Pro Tips: Note that funding rates may vary for certain trading pairs. Always refer to the Futures trading page for the most accurate information. You only pay or receive funding if you hold an open position at the exact second of settlement. If you close your position at 07:59 UTC, you will not pay or receive funding for the 08:00 UTC cycle.
3. How is the Fee Calculated?
The funding fee is based on the Total Position Value, not your margin.
Formula: Funding Fee = Position Value × Funding Rate
Calculation Example (Stablecoin-Margined):
If you hold a 10 BTC Long position and the price is $60,000:
- Position Value: $600,000
- Funding Rate: 0.01%
- Payment:
600,000×0.0160.00** (Deducted from your margin)
4. Impact on Liquidation
This is the most critical part for risk management. Funding payments are deducted directly from your Unused Margin.
- The Risk: If your margin is very low, a large funding payment could push your Margin Ratio below the maintenance requirement, triggering an automatic liquidation.
- Monitoring: Always check the "Upcoming Funding" amount on the trading dashboard if you are trading with high leverage.
Frequently Asked Questions
Why did I lose money at 8:00 AM UTC?
If you held an open position during a positive funding period, a funding fee was likely deducted and paid to traders on the opposite side of the market. You can verify this in your 'Account History' tab.
Where can I see the current rate?
The current rate and the countdown to the next settlement are displayed at the top of the Trading Chart for every pair on WOO X Pro.
Is there a cap on the funding rate?
Yes, WOO X Pro implements a maximum funding rate cap to protect traders during periods of extreme market volatility. Check the [Contract Specifications] for the cap on specific pairs.