Funding fee

Funding fee is the core operating mechanism of CoinQ perpetual contract.

The setting of funding fee is to ensure that the transaction price of perpetual swap contract closely follows the reference price of the underlying by exchanging funding fee regularly between long and short parties.

 

1.CoinQ does not charge any funding fee, and funding fee is charged between users.

2.Funding is generated every 8 hours, at 08:00, 16:00, and 00:00 [UTC+08:00]. Please follow the instructions in the contract information. You will only need to pay or receive funding if you hold a position at these three funding timestamps.

3.When funding fees are charged, they are deducted from the fixed margin of the user's position, up to the amount when the user's margin rate equals the maintenance margin rate and a certain percentage of the amount is left. The excess amount will not be charged. The actual funding fees that the user can charge also depend on the total amount deducted by the system from the counterparty's account. * If the user's leverage is relatively high, the system will not charge funding fees at individual settlement points.

 

The formula for calculating the funding fees you receive or pay is as follows:

The value of your position has nothing to do with leverage and is not based on how much margin you have allocated for the position:

Contract Position Value = Face Value * Number of Contracts * Latest Mark Price

 

Among them, the funding rate calculation formula is as follows:

Funding rate (F) = premium index (P) + clamp (interest rate (I) - premium index (P), 0.05%, -0.05%)

= average premium index + clamp (comprehensive interest rate - average premium index, premium deviation from upper limit, premium deviation from lower limit), funding rate upper limit, funding rate lower limit)

Clamp is an interval-limited function. When the target value exceeds the upper and lower limits, only the boundary value will be taken. For example, clamp (a, max, min), when a > max, the result is max; when a < min, the result is min; when max ≥ a ≥ min, the result is a.

Comprehensive interest rate - average premium index, limited by the premium deviation from the upper limit and the premium deviation from the lower limit, between the two; the final prediction of the next funding rate is limited by the funding rate upper limit and the funding rate lower limit, between the two.

 

Interest rate = interest rate depends on the lending rate of the base currency and the quote currency itself.

Interest rate (I) = (denomination interest rate index - base interest rate index) / funding rate interval

 

Premium index = Premium index (P) = (Max (0, depth weighted bid price - mark price) - Max (0, mark price - depth weighted ask price)) / spot price + reasonable basis of mark price