5️⃣Funding Fee

The purpose of the funding fee is to promote better tracking of the index price through a funding vehicle that compensates between buys and sells.

FIXT does not charge any fees for funding fees. It is exchanged directly in a P2P manner.

Collection: Funding fees are exchanged between long and short sellers every 8 hours at 00:00 UTC, 08:00 UTC and 16:00 UTC respectively. You will only pay or receive funding fees if you hold a position at this point. If a position is closed before the recharge time, no funding fee will be paid or received.

If the funding fee is positive, longs pay the shorts, and if the funding fee is negative, the shorts pay the longs. If there are two-way holdings, naked positions are used to calculate funding fees.

Funding Fee Calculation

Funding fee = Position Value* Funding Rate

Your position value is not related to your leverage value. For example, if you hold 100 BTC or USDT contracts, you will pay or receive funding fee according to the nominal value of these contracts, and not based on how much margin you have allocated to the actual position.

Funding Rate Calculation

Funds Rate (F) = Premium Index (P) + clamp (Interest Rate (I) - Premium Index (P), 0.05%,-0.05%)

Wherein:

Premium Index (P) = (Max (0, Impact Weighted Purchase Price - Mark Price) - Max (0, Mark Price - Impact Weighted Sale Price) / Spot Price + Fair Basis of Mark Price

Interest Rate (I) = (Quote Interest Rate Index - Base Interest Rate Index) / Funding Rate Interval

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