Funding

Funding keeps open interest balanced, so the pool is not left holding the net delta of the traders it filled. It does not close a basis to an index: the book sets the clearing price.

Two charges fold into one cumulative index per side.

Key figuresCopy Anchor Link

FormulasCopy Anchor Link

Borrow. Utilization is the market's net open interest as a share of the pool's liquidity. A balanced book leans on the pool for nothing, so it borrows nothing.

utilization = min(|longs - shorts| / pool liquidity, 100%)
borrow_rate = borrow_rate_per_hour × utilization

Both sides pay borrow_rate on their notional.

Skew.

skew      = (heavy - light) / (heavy + light)
skew_rate = min(funding_k_bps × skew, max_funding_rate_per_hour)

The heavy side pays skew_rate on its notional. The light side receives the same total, so its rate per dollar is scaled up:

credit_rate = skew_rate × heavy / light

The skew leg moves money between traders and mints none. When it does not divide evenly, the remainder stays with the pool. When one side is empty, the skew leg is skipped: there is nobody to pay. The borrow leg already charges for the exposure.

Each rate is computed in whole bps an hour, rounded down. On a site listing the borrow leg therefore reads zero until utilization reaches 100%, and the skew leg reaches its 100 bps cap at a skew of 1.25%.

Numerical exampleCopy Anchor Link

A site listing with $30,000 of longs and $10,000 of shorts on a $1,000,000 pool.

1. Utilization: $20,000 / $1,000,000 = 2%. Borrow: 1 × 2% = 0.02 bps, rounded down to 0.
2. Skew: ($30,000 - $10,000) / $40,000 = 50%. Skew rate: 8,000 × 50% = 4,000 bps, capped at 100 bps an hour.
3. Longs pay 100 bps an hour: $300.
4. Shorts receive 100 × $30,000 / $10,000 = 300 bps an hour: $300.

At that rate the heavy side pays 1% of its notional an hour, which is what pulls the book back to balance.

How it is chargedCopy Anchor Link

1. Every settled fill, fired trigger and liquidation accrues the index to now first. The permissionless accrue_funding crank keeps it moving when nobody trades.
2. One accrual counts at most 8 hours, so a crank that stalls (or a clock that jumps) cannot wipe out positions in one step.
3. A position owes size × (index now - index at entry).
4. Adding to a position blends its entry index by size. The old size keeps owing from where it started; the new size owes from now.
5. Closing part of a position settles the funding on the part that closes. The rest keeps owing from where it started, so a small close never clears funding the remainder has built up.
6. Funding owed counts against margin: leverage on an add and equity for liquidation are both net of it.

Funding and borrow owed count in the pool's value before positions close. See The pool.

On the trade screenCopy Anchor Link

The market header shows the 1h funding rate. The Funding tab beside Positions lists each open position with its entry and mark, its side's rate per hour, what the next hour costs or pays at that rate, and the funding paid so far. With nothing open, it shows the market on screen's current rates for longs and shorts.