> For the complete documentation index, see [llms.txt](https://docs.upscale.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.upscale.trade/trade-mechanics/funding.md). # Funding **Funding Rate** is a periodic payment exchanged between holders of long and short positions. The funding mechanism maintains alignment between the perpetual contract price and the market price of the underlying asset. 💡 **How it works:** * If funding is positive — long position holders pay short position holders * If funding is negative — short position holders pay long position holders * Upscale uses a **fixed funding rate** *** ## 🪙 Funding for Crypto Unlike dynamic funding on other exchanges, Upscale uses a **fixed funding fee model** for cryptocurrencies. ### Crypto Funding Parameters: * **Rate:** 0.03% * **Frequency:** every 8 hours * **Schedule:** 00:00, 08:00, 16:00 UTC 📌 Funding is charged **proportionally** to your position size and is deducted directly from your margin account. 🕒 **Schedule Example:** * 00:00 UTC — funding charge * 08:00 UTC — funding charge * 16:00 UTC — funding charge *** ## 🏛️ Funding for RWA (Forex, Commodity, Indices) RWA assets have a different funding system from cryptocurrencies with daily accrual. ### RWA Funding Parameters: * **Rate:** -0.048% on regular days * **Wednesday Rate:** -0.144% (triple funding) * **Frequency:** once per day * **Accrual Time:** 21:00 UTC ⚠️ **Important Features:** **Triple Funding on Wednesdays:** On Wednesdays, the funding rate triples to -0.144%, compensating for weekend days when markets are closed. **Funding During Market Pauses:** When RWA markets are paused (from Friday 21:00 UTC to Monday 00:00 UTC), funding is **not charged** on open positions. *** ## 💼 Impact on Strategies ### Short-term Trading If you hold positions for a few hours and close them before funding accrual time, this fee will not affect you. ### Medium-term and Long-term Trading When holding positions through multiple funding cycles, it's important to account for accumulated costs: **Calculation Example for Crypto:** * Position: $10,000 * Holding: 3 days (9 funding cycles) * Cost: $10,000 × 0.03% × 9 = $27 **Calculation Example for RWA (Forex/Commodity):** * Position: $10,000 * Holding: Monday-Friday (5 days) * Wednesday included (triple funding) * Cost: $10,000 × (-0.048% × 4 + -0.144% × 1) = -$33.60 *** ## 📊 Tracking Funding Information about upcoming funding accruals is displayed in the trading terminal: * Time until next accrual * Current funding rate * Estimated amount for your open positions *** 💡 **Tip:** Account for funding when planning long-term positions — it can significantly impact your trade's final profitability. --- # 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.upscale.trade/trade-mechanics/funding.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.