# 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**

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## 🪙 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

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## 🏛️ 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.

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## 💼 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

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## 📊 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

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💡 **Tip:** Account for funding when planning long-term positions — it can significantly impact your trade's final profitability.