Frequently Asked Questions

Funding rates are a mechanism that keeps perpetual contract prices aligned with the underlying spot price. Unlike traditional futures that expire on a specific date, perpetual contracts never expire - this creates a challenge where the perpetual price could drift far from the spot price indefinitely.

Funding rates are calculated locally, not globally. Each perpetual DEX has its own rate depending on traders, liquidity, positioning, formulas, and price action. This is exactly what creates arbitrage opportunities - you can exploit these differences to extract profit.