Funding Rate Mechanism

To keep perpetual contract prices aligned with the spot market, QuBitDEX uses a funding rate settlement mechanism at regular intervals.

• Positive funding rate: When long positions dominate and the contract price trades above the spot price, longs pay shorts

• Negative funding rate: When shorts dominate and the contract price trades below spot, shorts pay longs

This mechanism typically settles every 8 hours. The platform will publish the upcoming funding rate percentage in advance.

Even if you don’t close your position, you may earn or pay funding depending on the direction of market imbalance.