Funding rates & APR
Funding rate
Every venue publishes a funding rate per interval — every hour on most on-chain venues, every 4 or 8 hours on most centralized ones. A positive rate means longs pay shorts; a negative one, shorts pay longs.
Normalizing to 8 hours
A 0.01 % hourly rate and a 0.01 % 8-hourly rate are very different. Before comparing venues we bring every rate to the same 8-hour basis:
rate_8h = rate × 8 / interval_hoursA 0.01 % rate paid hourly becomes 0.08 % per 8 hours.
Spread
For a pair, the long leg goes where the normalized rate is lowest and the short leg where it is highest:
spread_8h = rate_8h(short venue) − rate_8h(long venue)The short leg receives its rate, the long leg pays its rate (or receives it, when negative); the spread is what the pair earns.
APR
APR = spread_8h × 1,095 × 100 %1,095 is the number of 8-hour periods in a year (3 × 365). APR is annualized simple interest on the position size; nothing is compounded.
APR is quoted on position size, not on the margin you put up. A trade at 3× leverage on both legs earns on margin roughly APR × 3 / 2 — the size per leg is three times the margin of that leg, and there are two legs. Execute shows this as Net APR on margin.
Current rate and 7-day average
Funding moves. Next to the current rate we show the pair’s 7-day average, built from hourly history on both legs. It needs at least 24 hours of overlapping history; until then it is not shown.