Funding Rate

The funding mechanism ensures that perpetual contract prices remain pegged to spot market prices. Funding is transferred directly between longs and shorts — BBX does not charge any funding fee.

Rate Direction:

• Positive Funding Rate (Perpetual Price > Spot Price): Longs pay shorts.

• Negative Funding Rate (Perpetual Price < Spot Price): Shorts pay longs.

Settlement Times:

• Industry-standard: settled every 4 hour.

• Only applies to positions held at the settlement timestamp.

• Positions closed before settlement do not participate.

Impact on Margin:

Funding fees are deducted from the available account balance first; if the balance is insufficient, they are deducted from the position margin, causing the liquidation price to move closer to the mark price and increasing liquidation risk.

Variable Intervals During Volatility:

During periods of extreme market volatility, the funding settlement interval may be adjusted to accelerate price convergence. Adjustments are made in a transparent manner.