> For the complete documentation index, see [llms.txt](https://docs.nexus.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nexus.xyz/exchange/trading/perpetuals/funding-rates.md). # Funding Rates Funding keeps a perpetual's price anchored to its underlying index. At each funding interval, longs and shorts exchange a payment based on the gap between the perpetual's mark price and the index price. There is no expiry and no central counterparty — funding flows directly between position holders and nets to zero. ### Mechanics * **Interval.** Funding settles **hourly** (`funding_interval_s = 3600`). Per-market configurable. * **Premium sampling.** The premium between mark and index is sampled every **60 seconds** (`funding_sample_interval_seconds = 60`) and time-weighted (TWAP) across the interval. * **Direction.** When the perpetual trades above the index, the funding rate is positive and longs pay shorts; when it trades below, shorts pay longs. * **Settlement.** At each UTC-aligned interval boundary, funding is applied to every open position. The sum across all positions is zero (no value is created or destroyed by funding). ### Per-window cap Each market caps how large a single funding payment can be, to bound risk during volatile periods: ``` funding_rate_cap = 0.001 (0.1% per window, current testnet value) ``` The cap is a per-market parameter and is relaxed across release gates as the system is validated under wider conditions. ### Payment For an open position, the funding payment over an interval is: ``` funding_payment = position_notional × funding_rate ``` charged against (or credited to) account equity at settlement. Funding is independent of unrealized PnL — you can pay funding on a profitable position or receive it on a losing one. > **Status:** funding is live on testnet with hourly settlement and the parameters above. Per-market rates and caps are configurable and subject to tuning between gates. See Market Specifications for current per-market values. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.nexus.xyz/exchange/trading/perpetuals/funding-rates.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.