Market Data
Funding Rates
Definition
Funding rates are a mechanism that exchanges use to ensure that perpetual futures trade at a price that is close to the price of the underlying spot markets. Realized funding rates are covered for perpetual futures. Although the method for calculating the funding rate differs among exchanges, the basic concept remains the same: the funding rate is positive when the price of perpetual futures exceeds the spot price of the underlying asset, and negative when the price is below the spot price. In cases where the funding rate is positive, holders of long positions compensate short position holders. Conversely, when the funding rate is negative, short position holders compensate long position holders. This funding rate mechanism incentivizes traders to maintain alignment between perpetual futures prices and the underlying spot price.Details
Exchanges differ in their funding rate mechanism design and how they report the data through their API.- Realized funding rate: Many exchanges report two types of funding rates. The realized funding rate represents the actual funding rate calculated over the previous funding interval and determines the funding payment. The predicted funding rate is the current estimate of the funding rate expected at the end of the current funding interval. Some exchanges refer to this as the real-time funding rate or next funding rate. While the predicted funding rate may be relevant to some users, this data concept focuses exclusively on the realized funding rate. Any references to “funding rate” herein correspond to the realized funding rate.
- Funding interval: The funding interval specifies how frequently the funding rate and funding payments are calculated. For many exchanges, funding rates are produced every 8 hours, calculated based on the difference between the futures price and the spot price over the previous 8-hour period, making the funding interval 8 hours. For certain exchanges, funding rates and payments are calculated continuously, with the funding interval conventionally set to 1 millisecond.
| Exchange | Funding Rate Frequency |
|---|---|
| Binance | real-time |
| Bitget | every 8 hours |
| BitMEX | every 8 hours |
| Bybit | every 8 hours |
| Coinbase Intl | every hour |
| Deribit | real-time |
| dYdX | every hour |
| FTX | real-time |
| Huobi | every 8 hours |
| Hyperliquid | every hour |
| Kraken | every 4 hours |
| OKEx | every 8 hours |
API Endpoints
Futures
/markets/futures/funding-rates/information /markets/futures/funding-rates/{instrument} /market/futures/batch-funding-rates/{exchange}Availability
Funding rates are available via REST API for historical (time series) data as well as WebSockets for real-time data.| Exchange | Futures Market Start Date* |
|---|---|
| Binance | 2019-09-10 |
| Bitget | 2024-11-21 |
| BitMEX | 2020-05-01 |
| Bybit | 2021-09-24 |
| Coinbase Intl | 2025-03-16 |
| Deribit | 2019-04-30 |
| dYdX | 2024-11-26 |
| FTX** | 2020-12-15 |
| Huobi | 2020-03-25 |
| Hyperliquid | 2025-03-16 |
| Kraken | 2018-08-31 |
| OKEx | 2021-07-11 |
Frequently Asked Questions
What are Funding Rates in crypto?- Funding rates help align the perpetual futures contract price with the index price. They are designed to keep prices closer to spot prices and to compensate for discrepancies caused by the perpetual nature of the contracts. All cryptocurrency derivatives exchanges apply funding rates to perpetual contracts, with the standard unit expressed as a percentage. Funding rates result from market behavior and can provide interpretive insights into the derivatives market, which is a dominant price maker. However, equating high funding rates directly with inevitable price drops can be misleading. During bull markets, high funding rates often coincide naturally with rising prices.