DeFi & Yield

What is a funding rate on perpetual contracts?

A funding rate is a periodic payment exchanged between traders holding long and short positions on a perpetual contract, used to keep the contract price aligned with the underlying spot price. When the rate is positive, longs pay shorts; when negative, shorts pay longs. For example, a trader holding a long position through a positive-funding window pays a small fee to short holders. Funding rates shift with market sentiment and can erode a position over time, with no assurance of a favourable outcome. Qatobit's index products focus on fully-funded, unleveraged allocation rather than leveraged perpetual exposure. See the methodology.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.