> ## Documentation Index
> Fetch the complete documentation index at: https://staging-docs.orderly.network/llms.txt
> Use this file to discover all available pages before exploring further.

# Funding Rate

> Learn how funding rates are calculated and settled between long and short traders.

Funding Fees are cash flows periodically exchanged between long and short position holders. These fees are based on a **Funding Rate** designed to keep the futures price aligned with the underlying Index Price.

## Settlement schedule

Funding payments settle at fixed intervals depending on the market's funding period:

| Period  | Settlement times (UTC)                   |
| ------- | ---------------------------------------- |
| 1 hour  | Every hour on the hour                   |
| 4 hours | 00:00, 04:00, 08:00, 12:00, 16:00, 20:00 |
| 8 hours | 00:00, 08:00, 16:00                      |

<Note>
  In the event of extreme market volatility or for new listings, Orderly reserves the right to
  adjust the funding interval (e.g. from 8h to 4h, 2h, or 1h), as well as update the Funding Rate
  Cap and Floor.
</Note>

## Rate components

The Funding Rate is determined by two components: the **Premium** and the **Interest Rate**.

### Premium calculation

The Premium measures the deviation between the futures price and the Index Price (i.e. the basis). To avoid manipulation, Orderly uses **Impact Bid and Ask prices** rather than the simple best bid/ask:

* **Impact Bid Price** -- the average fill price to execute a sell order with the size of the Impact Margin Notional.
* **Impact Ask Price** -- the average fill price to execute a buy order with the size of the Impact Margin Notional.
* **Impact Margin Notional** -- the notional available to trade with 1,000 USDC of collateral at the maximum leverage of the specific market. For example, for NEAR-USDC with 10x max leverage, the Impact Margin Notional is 10,000 USDC.

Every 15 seconds, Orderly computes the Premium:

```
Premium = [Max(0, Impact Bid Price - I) - Max(0, I - Impact Ask Price)] / I

where I = Index Price
```

### Piecewise linear funding function

For each funding period, Orderly calculates the Premium every 15 seconds. The number of sample points depends on the funding period:

| Funding period | Sample points (N) |
| -------------- | ----------------- |
| 1 hour         | 240               |
| 4 hours        | 960               |
| 8 hours        | 1,920             |

An Average Premium is then computed:

```
Average Premium = (Premium_1 + Premium_2 + ... + Premium_N) / N
```

A piecewise linear function with **increasing slopes** is applied to the Average Premium (`x`), allowing faster convergence when prices deviate significantly:

| Region | Condition            | Slope | Formula                                            |
| ------ | -------------------- | ----- | -------------------------------------------------- |
| Low    | \|x\| \< 0.5%        | 1x    | `f(x) = x`                                         |
| Medium | 0.5% ≤ \|x\| \< 1.5% | 2x    | `f(x) = 0.5% * sign(x) + (x - 0.5% * sign(x)) * 2` |
| Large  | \|x\| ≥ 1.5%         | 4x    | `f(x) = 2.5% * sign(x) + (x - 1.5% * sign(x)) * 4` |

In the **Low** range, the function equals the premium itself. In the **Medium** range, each additional basis point of deviation counts double. In the **Large** range, it counts 4x -- pushing the funding rate to correct faster.

### Interest Rate

The second component is the Interest Rate:

```
Interest Rate = (USDC Interest - Underlying Asset Interest) / Funding Interval
```

The Interest Rate is fixed at **0.01%** for most perpetual markets (assuming USDC interest of 0.06% and asset interest of 0.03%). Orderly reserves the right to adjust this depending on market conditions.

## Final Funding Rate

The final Funding Rate combines the Premium function and Interest Rate, subject to per-market caps and floors:

```
Funding Rate = clamp[Funding Function(Average Premium) + clamp(Interest Rate - Average Premium, cap_ir, floor_ir) / (8/N), Cap Funding, Floor Funding]
```

The `Cap Funding` and `Floor Funding` values are specific to each perpetual market. In extreme market conditions, Orderly may adjust these parameters to allow the higher-slope regions of the funding function to take effect.

| Perp Market | Interval | Cap Funding | Floor Funding | Interest Rate | Cap IR | Floor IR |
| ----------- | -------- | ----------- | ------------- | ------------- | ------ | -------- |
| 1000BONK    | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| 1000PEPE    | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| 1000SHIB    | 8 hours  | 0.4875%     | -0.4875%      | 0.01000%      | 0.01%  | -0.01%   |
| AAVE        | 8 hours  | 0.7500%     | -0.7500%      | 0.01000%      | 0.01%  | -0.01%   |
| ADA         | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| APT         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| AR          | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ARB         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ASTER       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| AVAX        | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| AXS         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| BASED       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| BCH         | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| BERA        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| BIO         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| BIRB        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| BNB         | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| BTC         | 8 hours  | 0.3000%     | -0.3000%      | 0.01000%      | 0.04%  | -0.04%   |
| BZ          | 4 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| CAKE        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| CL          | 4 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| CRV         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| DASH        | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| DOGE        | 8 hours  | 0.4875%     | -0.4875%      | 0.01000%      | 0.01%  | -0.01%   |
| DOT         | 8 hours  | 0.4875%     | -0.4875%      | 0.01000%      | 0.02%  | -0.02%   |
| EDGE        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ENA         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ETH         | 8 hours  | 0.3000%     | -0.3000%      | 0.01000%      | 0.04%  | -0.04%   |
| ETHFI       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| FARTCOIN    | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| FET         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| FIL         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| GOAT        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| GOOGL       | 8 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| H           | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| HBAR        | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| HYPE        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ICP         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| INJ         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| IP          | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| JUP         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| LDO         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| LINEA       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| LINK        | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| LIT         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| LTC         | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| M           | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| MEGA        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| MERL        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| MNT         | 8 hours  | 4.00%       | -4.00%        | 0.01000%      | 0.02%  | -0.02%   |
| MON         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| MORPHO      | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| MYX         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| NAS100      | 8 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| NEAR        | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| NVDA        | 8 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| ONDO        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| OP          | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ORDER       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.02%  | -0.02%   |
| PAXG        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| PENDLE      | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| PENGU       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| POL         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| PUMP        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| RAY         | 4 hours  | 0.7500%     | -0.7500%      | 0.01000%      | 0.01%  | -0.01%   |
| S           | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SEI         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SKR         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SKY         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SNX         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SOL         | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| SPX         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SPX500      | 8 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| STBL        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| SUI         | 8 hours  | 0.7500%     | -0.7500%      | 0.01000%      | 0.01%  | -0.01%   |
| TAO         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| TIA         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| TON         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| TRUMP       | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| TRX         | 8 hours  | 0.4875%     | -0.4875%      | 0.01000%      | 0.01%  | -0.01%   |
| TSLA        | 8 hours  | 0.2000%     | -0.2000%      | 0.01000%      | 0.07%  | -0.07%   |
| UNI         | 8 hours  | 0.4500%     | -0.4500%      | 0.01000%      | 0.02%  | -0.02%   |
| USELESS     | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| VIRTUAL     | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| WIF         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| WLFI        | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| WLD         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| WOO         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| XAG         | 4 hours  | 0.1000%     | -0.1000%      | 0.01000%      | 0.07%  | -0.07%   |
| XAU         | 4 hours  | 0.1000%     | -0.1000%      | 0.01000%      | 0.07%  | -0.07%   |
| XMR         | 8 hours  | 0.7500%     | -0.7500%      | 0.01000%      | 0.01%  | -0.01%   |
| XPL         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| XRP         | 8 hours  | 0.3750%     | -0.3750%      | 0.01000%      | 0.01%  | -0.01%   |
| ZEC         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |
| ZEN         | 8 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.02%  | -0.02%   |
| ZRO         | 4 hours  | 2.00%       | -2.00%        | 0.01000%      | 0.01%  | -0.01%   |

## Funding period

The Funding Period for Orderly perpetual futures can be 1 hour, 4 hours, or 8 hours depending on the market. The Funding Rate is expressed on the basis of the funding period for each market.

## Accrued Funding

At each funding settlement time, a position accrues the following funding:

```
Accrued Funding = Position Size × Mark Price × Funding Rate
```

* **Positive funding rate**: longs pay shorts
* **Negative funding rate**: shorts pay longs

## Funding settlement

The accrued funding of an account's position is settled when a PNL settlement is triggered on that account (see [PNL settlement](/introduction/trade-on-orderly/perpetual-futures/margin-leverage-and-pnl#pnl-settlement)).