Funding Fee Mechanism Explained
The Funding Fee in YUBIT perpetual contracts is a mechanism that helps keep contract prices anchored to the spot market price. It is not charged by the platform, but rather a cost exchange settled directly between users holding positions.
1. Purpose of Funding Fees
To adjust and minimize the difference between perpetual contract prices and spot market prices.
When the funding rate is positive: longs pay shorts.
When the funding rate is negative: shorts pay longs.
Only users holding positions at the settlement time are subject to funding fees. Closing your position beforehand means no funding is charged.
2. Settlement Cycle and Timing
Funding settlement frequency may vary by contract:
Commonly every 8 hours (e.g., 08:00, 16:00, 24:00 HKT)
Some contracts settle every 4 hours
⚠️ Note: Settlement does not always occur at the exact hour mark. It is triggered automatically within a short window around the scheduled time.
3. Funding Fee Calculation
Formula: Funding Fee = Position Value × Current Funding Rate
Funding Rate Calculation: Funding Rate = Clamp( MA( (Bid1 + Ask1)/2 – Spot Index Price ) / Spot Index Price – Interest, a, b )
Interest is currently set to 0.
Clamp(a, b) restricts the rate within the range [a, b].
MA represents a moving average function.
4. Funding Fee Deduction Rules
Cross Margin Mode
Deducted directly from available cross margin balance.
If balance is insufficient, the system cancels all related orders (spot, cross, isolated).
Deduction stops once balance reaches maintenance margin + closing fee.
Isolated Margin Mode
First deducted from available transferable balance in cross margin.
If insufficient, related isolated orders are cancelled.
Final deduction comes from the isolated margin until it reaches maintenance margin + closing fee.
Practical Limitation
The actual funding you receive depends on the counterparty’s ability to pay.
YUBIT does not take any funding fees. It is purely a peer-to-peer transfer.
5. Multiple Positions – Deduction Priority
If you hold multiple contracts across different tokens (within a single-asset or cross-asset margin account), the system deducts fees in a preset priority order until your margin balance reaches an acceptable level.
6. Important Notes
If a contract is delisted before the settlement time, no funding fee will be charged or received for that period.
The funding fee mechanism is designed to stabilize the market and reduce price deviations.
⚠️ Funding fees are not a guarantee of profit.
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