{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "perpetual-funding-payments",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/perpetual-funding-payments/",
  "collection": "defi",
  "title": "Perpetual funding payments: who pays whom, and on what amount?",
  "description": "Calculate a funding payment from notional and a period rate, and avoid confusing a quoted annualization with earned return.",
  "aliases": [
    "how perpetual funding payments calculated",
    "calculate a perpetual funding payment"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:18:00.092Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "Perpetual funding is a transfer tied to an open contract position and a periodic rate. In the cited dYdX design, positive funding generally means longs pay shorts and negative funding reverses that direction. The amount depends on the position’s notional and the applicable rate, not just the margin deposited.",
    "claimId": "perpetual-funding-payments-quick-answer",
    "sourceIds": [
      "x425-defi-dydx-funding"
    ]
  },
  "keyFacts": [
    {
      "label": "Purpose",
      "value": "Funding encourages the perpetual to trade near its reference price.",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "id": "purpose",
      "claimId": "perpetual-funding-payments-fact-purpose"
    },
    {
      "label": "Direction",
      "value": "The rate’s sign determines which side pays under the stated convention.",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "id": "direction",
      "claimId": "perpetual-funding-payments-fact-direction"
    },
    {
      "label": "Period",
      "value": "Rate displays can show hourly, eight-hour or annualized figures.",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "id": "period",
      "claimId": "perpetual-funding-payments-fact-period"
    }
  ],
  "prerequisites": [
    "perpetual-futures"
  ],
  "sections": [
    {
      "id": "example",
      "heading": "Apply the rate to the right base",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "paragraphs": [
        "For a hypothetical 10,000 quote-unit position and a 0.01% rate for one payment period, the payment is 10,000 × 0.0001 = 1 quote unit. With 1,000 of margin, that is 0.1% of the margin for that period, despite the quoted funding rate being 0.01%.",
        "This assumes a fixed notional for the calculation and excludes fees. It is not a current rate or a forecast."
      ]
    },
    {
      "id": "time",
      "heading": "Compare equivalent periods",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "paragraphs": [
        "An annualized display extrapolates a short-period observation; it does not lock that rate for a year. Rates can change sign, position values can change and protocol parameters can be governed. Record the rate period and the actual payments before comparing two markets."
      ]
    },
    {
      "id": "pnl",
      "heading": "An open position already has cash-flow history",
      "sourceIds": [
        "x425-defi-dydx-funding"
      ],
      "paragraphs": [
        "Funding can increase or decrease realized P&L without closing the position. A profitable price move may be partly offset by payments. Conversely, receiving funding does not eliminate losses from the contract price or liquidation risk. Reconcile funding history separately from the gross price-change calculation."
      ]
    }
  ],
  "faq": [
    {
      "question": "Is receiving funding a guaranteed yield strategy?",
      "answer": "No. Funding can reverse, and price exposure, margin constraints and execution costs remain.",
      "sourceIds": [
        "x425-defi-dydx-funding",
        "x425-defi-dydx-liquidation"
      ]
    }
  ],
  "claims": [
    {
      "id": "perpetual-funding-payments-quick-answer",
      "articleSlug": "perpetual-funding-payments",
      "statement": "Perpetual funding is a transfer tied to an open contract position and a periodic rate. In the cited dYdX design, positive funding generally means longs pay shorts and negative funding reverses that direction. The amount depends on the position’s notional and the applicable rate, not just the margin deposited.",
      "sourceIds": [
        "source-18542509002f6af2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-18542509002f6af2",
          "locator": "Funding rates; premium; time intervals"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX funding direction, hourly/8hour/annualized displays and funding realized while open. 10000×0.0001=1;1/1000=0.1% margin."
        ]
      }
    },
    {
      "id": "perpetual-funding-payments-fact-purpose",
      "articleSlug": "perpetual-funding-payments",
      "statement": "Purpose: Funding encourages the perpetual to trade near its reference price.",
      "sourceIds": [
        "source-18542509002f6af2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-18542509002f6af2",
          "locator": "Funding rates; premium; time intervals"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
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      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX funding direction, hourly/8hour/annualized displays and funding realized while open. 10000×0.0001=1;1/1000=0.1% margin."
        ]
      }
    },
    {
      "id": "perpetual-funding-payments-fact-direction",
      "articleSlug": "perpetual-funding-payments",
      "statement": "Direction: The rate’s sign determines which side pays under the stated convention.",
      "sourceIds": [
        "source-18542509002f6af2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-18542509002f6af2",
          "locator": "Funding rates; premium; time intervals"
        }
      ],
      "scope": {
        "collection": "defi",
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      "qualification": "",
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        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX funding direction, hourly/8hour/annualized displays and funding realized while open. 10000×0.0001=1;1/1000=0.1% margin."
        ]
      }
    },
    {
      "id": "perpetual-funding-payments-fact-period",
      "articleSlug": "perpetual-funding-payments",
      "statement": "Period: Rate displays can show hourly, eight-hour or annualized figures.",
      "sourceIds": [
        "source-18542509002f6af2"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-18542509002f6af2",
          "locator": "Funding rates; premium; time intervals"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:18:00.092Z",
        "reviewer": "Independent automated verification — Codex root, separate from the DeFi drafting agent",
        "notes": [
          "Checked dYdX funding direction, hourly/8hour/annualized displays and funding realized while open. 10000×0.0001=1;1/1000=0.1% margin."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "x425-defi-dydx-funding",
      "label": "Default funding rates on dYdX",
      "publisher": "dYdX Operations Services",
      "url": "https://help.dydx.trade/en/articles/166992-default-funding-rates-on-dydx",
      "locator": "Funding rates; premium; time intervals",
      "note": "Funding direction, position-sized transfers and governance-adjustable calculation.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:20.972Z",
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      "recordId": "source-18542509002f6af2"
    },
    {
      "id": "x425-defi-dydx-liquidation",
      "label": "Liquidations on dYdX Chain",
      "publisher": "dYdX Operations Services",
      "url": "https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain",
      "locator": "Margin; fillable price; liquidation",
      "note": "Distinguishes eligibility, order execution and account losses.",
      "version": "Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded",
      "checkedAt": "2026-10-02T18:53:20.755Z",
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  ],
  "related": {
    "articles": [
      "realized-unrealized-trading-pnl",
      "spot-perpetual-basis-risk",
      "initial-vs-maintenance-margin",
      "perpetual-futures",
      "mark-index-last-price"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Perpetual funding payments: who pays whom, and on what amount?.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/perpetual-funding-payments/"
}