Funding fees are charges incurred during in-between trades that help balance the price difference between the spot price and the futures contract price. These fees are exchanged at fixed intervals between buyers and sellers of the contract based on the price difference.
Funding Amounts are calculated using the following formula:
Funding Amount = Nominal Value of Positions * Funding Rate
- Nominal Value of Positions = Mark Price * Size of a Contract (for USDⓈ-Margined contracts)
- Contract Multiplier * Size of a Contract/Mark Price (for Coin-Margined contracts)
Funding payments generally occur every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC for all Binance Futures perpetual contracts. Traders are only liable for funding payments in either direction if they have open positions at the pre-specified funding times. You are not liable for any funding if you do not have a position. If you close your position before the funding time, you will not pay or receive any funding.
There is a 1 minute deviation in the actual funding fee transaction time. For example, when a trader opens a position at 08:00:59 UTC, the funding fee could still apply to the trader (either paying or receiving the funding fee).