The Coincall perpetual contract has no expiration date and traders can hold it indefinitely. The introduction of a funding fee mechanism can anchor the perpetual contract market price to the spot price.
The funding fee is charged every 8 hours at 08:00, 16:00, and 24:00 UTC (actual collection time may vary). Traders will only pay or receive the funding fee if they hold a perpetual contract position at the time of collection. If the position is closed before the fee is collected, no funding fee is required.
Generally, when the market is bullish, the funding fee is positive, and the long position of the perpetual contract pays the funding fee to the short position. When the market is bearish, the funding fee is negative, and the short position of the perpetual contract pays the funding fee to the long position.
Funding Fee Calculation:
Funding Fee = Position Nominal Value * Current Funding Rate
Position Nominal Value = Position Size * Mark Price
Funding Rate Calculation:
The funding rate is affected by the comprehensive interest rate and premium.
Funding Rate = clamp (Average Premium Index + clamp (Comprehensive Interest Rate - Average Premium Index, Premium Deviation Upper Limit, Premium Deviation Lower Limit), Funding Rate Upper Limit, Funding Rate Lower Limit)
Comprehensive Interest Rate
The daily comprehensive interest rate is 0.03%, and the funding rate settlement frequency is 3 times per day, with each period's comprehensive interest rate being 0.01%.
Average Premium Index
The average premium index is the time-weighted average of all premium indices in the 8-hour funding period.
Where
- Premium_Index_1: the first premium index data point
- n = 60/5 * 60 * 8 = 5,760
And
- Premium Index = [Max(0, Impact Bid Price - Index Price) - Max(0, Index Price - Impact Ask Price)] / Index Price
- Impact Bid Price/Ask Price refers to the average bid/ask order price when the cumulative order amount reaches the Impact Margin Notional, starting from the first order on the bid/ask side.
- Impact Margin Notional (IMN) = 200 USDT / Initial margin rate at the maximum leverage level
- Premium Deviation Limit: +/- 0.05%
- Funding Rate Limit:
- For instruments with <= 25x Leverage, Funding Rate is capped at +/- 3%.
- For instruments with >25x Leverage, Funding Rate is capped at +/- (0.75 * Maintenance Margin Ratio)
*The displayed formula represents the core framework of the funding rate calculation. In practice, additional adjustments and smoothing mechanisms may be applied to reflect overall market conditions and ensure stability.
Note that the funding fee will be deducted directly from the available balance in the account and will be deducted up to the maximum available balance. Any excess will not be charged. The platform will also distribute based on the actual deduction, so the amount received by the user may differ from the theoretical calculation. The funding fee history record shows the actual deduction or receipt.
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