πFunding
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.
π‘ How it works:
If funding is positive β long position holders pay short position holders
If funding is negative β short position holders pay long position holders
Upscale uses a fixed funding rate
πͺ 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
π Funding is charged proportionally to your position size and is deducted directly from your margin account.
π Schedule Example:
00:00 UTC β funding charge
08:00 UTC β funding charge
16:00 UTC β funding charge
ποΈ Funding for RWA (Forex & Commodity)
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
β οΈ 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.
πΌ 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 Γ 0.03% Γ 9 = $27
Calculation Example for RWA (Forex/Commodity):
Position: $10,000
Holding: Monday-Friday (5 days)
Wednesday included (triple funding)
Cost: $10,000 Γ (-0.048% Γ 4 + -0.144% Γ 1) = -$33.60
π 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
π‘ Tip: Account for funding when planning long-term positions β it can significantly impact your trade's final profitability.
Last updated