DEX Funding Fee Mechanism

Gepubliceerd op 14 jul 2023Geüpdatet op 28 mei 20242 min. leestijd

OKX-DEX perpetual swaps adopt a funding fee mechanism to anchor the market price of perpetual swap to the spot price.

The funding fee is charged once every hour and on the hour (HKT) (the actual charging time may last about 20 seconds, please refer to the actual charging period). The user is only required to pay or receive a funding fee if a position is held at that moment. If a position is closed before the fee is charged, no funding fee is required. (If a contract has been delisted before settlement, no funding fee shall be charged for the period.)

1. Funding Fee Funding Fee = Value of position held * Current funding rate When the funding rate is positive, the long position shall pay the short. Likewise, when it‘s negative, the short position shall pay the long. Funding Rate = Clamp {[( (Contract Bid Price + Contract Ask Price) / 2 - Spot Index Price) / Spot Index Price - Interest], a, b} *The current interest is 0. The parameters of a and b are as follows:

Tier COIN a b
1 BTC -0.046875% 0.046875%
2 AVAX, SOL, ETH -0.09375% 0.09375%
3 MATIC and other coins -0.1875% 0.1875%

(The above data and indices may be adjusted in real-time according to market conditions, and adjustments shall be made without notice.)

The funding rate will be calculated every minute, and the fee shall be charged based on the rate calculated at xx:59 (HKT).

2. Sequence of Charges In the single-currency cross margin account, if a user holds multiple positions (perpetual swaps) where funding fees are required to be charged in accordance with a certain currency sequence. The charges may occur at any moment, including in the midst of liquidation. If insufficient, the platform's insurance fund shall be utilized to underwrite the losses.