| Symbol | Mark Price | Funding Rate | ||
|---|---|---|---|---|
What Are Perpetual Funding Rates?
Perpetual futures contracts never expire — instead, they use a funding rate mechanism to keep their price anchored to the spot market. Every 8 hours, longs pay shorts (or vice versa) based on the current funding rate. This creates a powerful sentiment signal: when funding rates are deeply positive, the market is over-leveraged long, which can precede violent corrections. Negative rates indicate shorts are paying, signaling bearish excess leverage.
High positive funding rates (above 0.1% per 8h, or ~110% annualized) are historically associated with local tops and increased liquidation risk. Negative funding rates often mark local bottoms where shorts are squeezed. The annualized rate column helps contextualize the cost of holding a leveraged position over time.
Monitor funding rates alongside the Open Interest Tracker and Liquidation Heatmap for a complete picture of derivatives market positioning.