Crypto trading · Pro
Funding fee
Also searched as: funding payment
What does Funding fee mean?
A funding fee is the actual payment or receipt associated with a perpetual position at a funding event. It generally depends on the applicable position value and funding rate.
Example
A hypothetical 10,000 USDT position at a 0.01% rate produces a 1 USDT payment for that event.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Funding can reduce equity and available risk room even when price is unchanged. Check whether the prop calculation includes these transfers.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.