MDEX.COM
English
English
  • Welcome to MDEX.COM
  • MDEX LightPaper
  • Meta-Elephant NFT
  • Guids
    • MDX cross-chain to Ethereum (ERC20) operational guide
    • Anti-Scam Guide
    • Farming by Voting Plan
      • Voting tutorials
    • DAO Governance Rules
      • Governance voucher Guide
      • Director Election and Voting Guide
      • Community Proposal Voting Guide
      • Community Proposal Guide
      • DAO Governance FAQ
    • New “Market” Tutorial of MDEX
    • Manual for MDEX order book function
    • Tutorial Guide on Referral Rebate
    • Boardroom Lockup Tutorial
    • Boardroom Staking Pool Release Tutorial
    • How to use the wallet
      • How to create a wallet and enter the MDEX trading interface on mobile
      • How to install MetaMask wallet in browser and configure the mainnet
    • How to conduct liquidity mining
      • PC Version
      • Mobile Version
    • How to create a liquidity pool on the MDEX platform?
    • How to trade mining
      • Mobile Version
      • PC Version
    • Futures Trading
      • Crypto Futures Explained
      • Funding Rate
      • Transfer Funds into Your Futures Wallet【Website】
      • Changing the Leverage Multiplier
      • How to change Margin Mode
      • How to use the MDEX Futures Calculator
      • Beginner's Guide to Futures Trading
      • MDEX Futures Transaction Fees
      • Mark Price in USDⓈ-M Perpetual Futures Contracts
      • MDEX Futures Liquidation Protocol
      • Order Types
      • What is a Stop Order
      • What is a Trailing Stop Order
      • Types of Position Mode
      • Leverage and Margin for USDⓈ-M Perpetual Futures Contracts
      • Why Can't I Place a Futures Order?
      • USDⓈ-M Perpetual Futures Contract Specifications
    • How to conduct cross-chain
      • How to cross-chain USDT to BSC
      • How to cross-chain MDX to BSC
      • Guide for cross-chain SHIB from ETH to Heco
  • Announcement
    • Announcement on the HECO Network Shutdown and Clearance of Certain HECO Assets
    • Announcement on MDEX Team's Completion of MDX Token Buyback and Burn Equivalent to 3 Million USDT
    • Announcement on the Repurchase and Burn of MDX by MDEX
    • Announcement on Enabling ERC20 Network Deposits for MDX on HTX Exchange
    • Announcement on the Official Deployment of MDEX NFT Marketplace on Polygon Network
    • An announcement on the thirteenth halving of MDX production
    • Join the MDEX NFT Market (BNB Chain) Trading Competition and Win a Total Reward of 500U worth of MDX
    • Announcement on the Official Deployment of MDEX NFT Marketplace on the Ethereum Network
    • Announcement Regarding the Launch of NFT Trading Marketplace on MDEX (BNB Chain)
    • Announcement Regarding the Restart of Cross-Chain Bridge Functionality on MDEX
    • An announcement on the twelfth halving of MDX production
    • MDEX officially deployed the OPBNB Network
    • MDEX's Third Anniversary: The Path of Flexibility Amidst Changes
    • An announcement on the eleventh halving of MDX production
    • MDEX advises users to convert their BUSD to other stablecoins by February 2024
    • An announcement on the tenth halving of MDX production
    • Announcement on the Addition of MDEX Team Wallet Address
    • Announcement on MDEX.COM has officially launched the Cross-Chain Bridge functionality
    • An announcement on the ninth halving of MDX production
    • Announcement on liquidity mining activities with Stader on MDEX (BSC)
    • Announcement on MDEX Officially Deployed on BitTorrent Network
    • MDEX is deploying BTTC Network and launching multiple activities with a total reward of $180,000
    • Announcement on UI upgrade of MDEX official website
    • An announcement on the eighth halving of MDX production
    • MDEX forges ahead with determination on its 2nd Birthday
    • Enjoy the Lowest Transaction Fee on BNB Chain on MDEX!
    • MDEX Referral System Updated Version (BNB Chain)
    • An announcement on the seventh halving of MDX production
    • Announcement on joint mining activities with BULL BTC CLUB(BBC) on MDEX (BSC)
    • Announcement on MDEX launches USDT-margined perpetual trading feature
    • An announcement on the sixth halving of MDX production
    • Announcement on joint mining activities with Trias on MDEX (HECO)
    • Announcement on joint mining activities with AQUANEE on MDEX (BSC)
    • An announcement on the fifth halving of MDX production
    • Announcement on upgrading of cross-chain scope backed by iSwap on MDEX protocol
    • MDEX upgrades its cross-chain scope by integrating with the cross-chain protocol iSwap
    • Announcement on joint mining activities with Platofarm (MARK、PLATO) on MDEX (HECO)
    • Announcement on joint mining activities with CoinsPaid (CPD) on MDEX (BSC)
    • Announcement on 4th halving of MDX
    • Announcement on results of 4th round Farming by Voting Plan
    • Announcement on introduction of innovation zone and first batch of shirtlisted projects
    • Announcement on commencement of 4th round of Farming by Voting
    • Announcement on the list of Meta-Elephant NFT on Binance NFT Marketplace
    • Announcement on results of 3rd round Farming by Voting Plan
    • Announcement on commencement of 2nd round of Farming by Voting
    • Announcement on 2nd round of joint mining activities with Juggernaut on MDEX.COM (BSC)
    • 2000 Pieces of Meta-Elephant Mystery Boxes Grab on OpenMeta Primary Whitelist + Public Sale
    • MDEX 1 year anniversary: looking back, we never forget why we started
    • Announcement on joint mining activity with AVNRich (AVN) on MDEX (BSC)
    • Announcement on joint mining activity with WonderHero (WND) on MDEX (HECO)
    • Announcement on results of 2nd round Farming by Voting Plan
    • Announcement on the launch of OpenMeta, an NFT service platform incubated by the MDEX Foundation
    • Announcement on joint mining activities with Atlantis Loans on MDEX (BSC)
    • Announcement on commencement of 2nd round of Farming by Voting
    • The burning of the lock-up revenue of MDEX team
    • Announcement on joint mining activity with WonderHero (WND) on MDEX (HECO)
    • Announcement on results of first-round Farming by Voting Plan
    • MDEX will launch a new voting function to select projects with the highest potential
    • Announcement on joint mining activities with SPACE SIP on MDEX (BSC)
    • Announcement on addition of liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on joint mining activities with BabySwap (BABY) on MDEX (BSC)
    • Announcement on unlocking of assets before maturity for time deposit in boardroom
    • Announcement on joint mining activities with Torum (XTM)on MDEX (HECO)
    • Announcement on joint mining activities with GINZA NETWORK (GINZA) on MDEX (BSC)
    • Announcement on joint mining activities with Deap coin (DEP)on MDEX (BSC)
    • Announcement on the third halving of MDX and the adjustment of allocation of its transaction fee
    • Announcement on joint mining activities with MetaversePRO(META) on MDEX.COM (BSC)
    • Announcement on joint mining activities with Rici Elon (RICI) on MDEX (BSC)
    • Announcement on addition of liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on addition of liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on addition of liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on joint mining activities with BNB Hero (BNBH) on MDEX (BSC)
    • Support Plan for projects in META and GameFi sector from MDEX Foundation
    • Announcement on upgrade of referral program on MDEX
    • Announcement on joint mining activities with Juggernaut(JGN) on MDEX.COM (BSC)
    • Announcement on adjustment of MDX-PID farming pool in boardroom.
    • Announcement on addition of liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on mining activities between MDEX.COM and PIDAO Finance
    • Announcement on joint mining activities with Ariva on MDEX.COM (BSC)
    • Announcement on open of dual-mining Pool on MDEX
    • Announcement on new liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on new liquidity mining list and weightage adjustment on MDEX.COM (BSC)
    • Announcement on the optimization of the usage of lock-up incentives of the MDEX team in boardroom
    • MDEX.COM (BSC) will commence joint mining activities with KINE
    • Announcement on the launch of order book feature on MDEX
    • Announcement on upgrade of the repurchase and burn mechanism
    • Announcement on matters after the maturity of the lock-up positions in the boardroom on MDEX
    • Announcement on new liquidity mining activity & weightage adjustment on MDEX.COM (BSC)
    • Announcement on new liquidity mining activity on MDEX.COM (HECO)
    • Announcement on MDEX’s deployment on Ethereum Network
    • Announcement on destruction of staking profit for MDEX team
    • Announcement on MDEX.COM (BSC version) 's launch of new market function
    • MDEX reached a partnership with Alpaca Finance, a well-known lending app
    • Announcement of Community referendum on Community proposal on MDEX
    • The announcement that MDEX.COM is about to commence the community proposal
    • Announcement on the first-round election results of the director of MDEX.COM
    • Announcement on joint mining activities between MDEX.COM (HECO) & CONFLUX and new list for liquidity
    • Announcement on joint mining activities between MDEX.COM (BSC) & Binapet
    • Announcement on joint mining activities between MDEX.COM (BSC) & KALATA
    • Announcement on new liquidity mining list and weightage adjustment on MDEX.COM (HECO)
    • MDEX team decided to participant DAO directors' election
    • Announcement on joint mining activity between MDEX.COM (BSC) and X World Games
    • MDEX is about to launch the first round of the global director elections
    • Announcement on commence of collaboration between MDEX & MOBOX
    • Announcement on the launch of IMO ( phase 2) on MDEX.COM
    • Announcement on the launch of IMO ( phase 2) on MDEX.COM
    • Announcement on joint mining activity between MDEX.COM (BSC) and DeFi Warrior
    • MDEX Launches DAO Lock-in Vouchers
    • Announcement of MDEX.COM (HECO&BSC) liquidity mining weightage adjustment
    • Announcement on 2nd halving of MDX
    • Announcement on the launch of DAO governance page on MDEX.com
    • Announcement on the lock-up rewards destruction for MDEX team in September.
    • Announcement on joint mining activity between MDEX.COM (HECO) and NEXTYPE
    • Announcement on joint mining activity between MDEX.COM and Pancake Bunny & Qubit Finance
    • MDEX Foundation Releases $10 million Hunter Program to Help Ecological Projects
    • MDEX Referral Program Invitee Rewards Rules
    • MDEX Referral Program Rules
    • A review of MDEX performance at its half-year anniversary
    • MDEX supports the ETH hard fork upgrade
    • Announcement on destruction of MDEX team lock-up rewards and the schedule of DAO launching
    • MDEX.COM (HECO) is starting the joint mining activity with TUSD
    • MDEX.COM (BSC&HECO) Announcement on emendation of Boardroom award and liquidity mining list.
    • MDEX's 1st Video Creation Contest "Along with MDEX" successfully completed
    • MDEX.COM launches a new market function (Beta)
    • Announcement on launch of MDEX.COM Boardroom Lockup Function
    • Adjustments of MDEX.COM (BSC&HECO) joint mining and liquidity mining
    • MDEX.COM Boardroom dual mining launches and liquidity mining weights adjustment
    • MDEX (HECO & BSC) Announcement of emendation of rewards weightage for liquidity and trading mining
    • MDEX.COM(BSC) will soon start joint mining and add new pool for liquidity mining.
    • MDEX.COM (HECO) will soon start joint mining activity with O3
    • Adjustment of MDEX "Burning Black Hole" campaign
    • MDEX "Burning Black Hole" Campaign Re-launched
    • Announcement: Change of MDEX’s Official Twitter and Medium Accounts
    • MDEX.COM Adjusts the time of "Burning Black Hole"
    • MDEX will Optimize the “Burning Black Hole” and Reschedule Boardroom Dual Mining on Boardroom
    • Adjusting "Burning Black Hole" participation eligibility and rewards
    • Adjusting the Time for MDEX Burning Black Hole Campaign & Boardroom MDX Dual Mining
    • Notice on the Adjustment of Data Display and Dual-mining on Boardroom
    • MDEX.COM Completes It First Halving
    • MDEX's Updated Roadmap
    • Notice on Adjusting the Repurchase and Burn & Liquidity Mining on MDEX
    • MDEX.COM (BSC) Announcement for Boardroom Reward Adjustment
    • MDEX.COM Announcement Adjustment of Repurchase and Burn
    • Announcement for MDEX.com is About to launch IMO
    • MDEX (HECO) Will Start Mining Activity with MXC
    • MDEX.COM (HECO & BSC) Announcement For New Added Liquidity Mining Pools And Weight Adjustmen
    • Newly Added Liquidity Mining Pools and New Pools on Boardroom
    • MDEX Officially Participates in the HECO Supernode Campaign
    • Newly Added Liquidity Mining Pools and New Pools on Boardroom
    • New Added Liquidity Mining Pools And Weight Adjustment: Doge, BNB, HT
    • New Liquidity Mining Pools: DOG/USDT
    • MDEX.COM (HECO) Announcement For New Added Trading Mining Pools And Weight Adjustment
    • MDEX.COM (HECO) Announcement For New Added Liquidity Mining Pools And Weight Adjustment
    • MDEX.COM (BSC) Announcement For New Added Liquidity Mining Pools And Boardroom Reward Adjustment
    • MDEX.COM (HECO) Announcement For New Added Liquidity Mining Pools And Weight Adjustment
    • MDEX.COM(BSC) Announcement For Adjustment of Liquidity Mining And Repurchase Start
    • MDEX.COM(BSC) Announcement For New Added Liquidity And Trading Mining Pools And Weight Adjustment
    • MDEX.COM(BSC Version) Announcement For New Added Liquidity And Trading Mining Pools
    • Announcement for MDEX.COM (BSC version) is about to open Boardroom
    • MDEX launch on BSC, airdroping millions of MDX
    • Announcement For Mdex.com(HECO version) New Liquidity Mining Pools And Weight Adjustment
    • MDEX.COM (HECO) Is Going Online in the Innovation Section and Will Start Its First Joint Mining with
    • MDEX.com is about to open FILDA/HUSD &LHB/USDT liquidity mining
    • MDEX & HECO Chinese New Year Airdrop Campaign
    • MDEX Boardroom will start ‘Stake MDX to earn HT' soon
    • Mdex.com Boardroom will be officially launched
    • February 2nd MDEX.COM mining pool weight adjustment announcement
  • FAQ
  • API
  • Activity
    • Share your feedback to win $2,000 in MDEX’s Birthday
    • The 2022 MDEX’s Most Outstanding Community Members Selection
    • New Year’s Bull Market Celebration Predict Price to Share 10,000 MDX
    • $10,000 Rewards of Airdrop Event for Perpetual Traders
    • 10,000 MDX Giveaway on Every Lucky Friday(2nd)
    • 10,000 MDX Giveaway on Every Lucky Friday
    • Celebrating the Launch of WON Complete Tasks & Get Worth $40,000 Rewards
    • Double Campaigns to Win 2500 PLATO Rewards (worth $20,000+)
    • Trade NFTs for free Visit OpenMeta now Enjoy limited-time offer
    • Win double gifts for everyone $20,000 in $SHEESHA as rewards
    • Design mascot for Christmas and New Year Welcome 2022 take away $3,000 in $MDX
    • Win double gifts for everyone $20,000 in $DEP + $2,000 in MDX
    • Win double gifts for everyone $30,000 in $XTM as rewards
    • Get ready for the $30,000 Thanksgivings of MDEX! 20% discount for MDX, ETH and BTC trading Experienc
    • Experience the order book function and share $10,000 in $MDX rewards!
    • KALATA trading competition starts! Win $30,000 in $KALA
    • Celebrating 1 Million Interactive Users, Feedback Insights to Win $3000 in $MDX
    • Mascot Stickers Design Contest 2000 MDX Rewards Waiting For You
    • MDEX is launching its second round of M-angel recruitment
    • Join the first MDEX Video Creation Contest to win 4500MDX rewards
    • Rabbit Trading Competition to Get $50,000 in $RABBIT Rewards
  • Contact Us
    • Business Collaboration
    • Media and Community
  • General Information
Powered by GitBook
On this page

Was this helpful?

  1. Guids
  2. Futures Trading

Funding Rate

PreviousCrypto Futures ExplainedNextTransfer Funds into Your Futures Wallet【Website】

Last updated 2 years ago

Was this helpful?

Below, you can see the Funding Rate and the countdown timer to the next Funding Rate on MDEX:

(Website)

1. The role of the Funding Rate

The key role of the Funding Rate is to narrow the price difference between the perpetual futures market and the corresponding spot market (price regression).

2. Why is the Funding Rate so important?

Traditional futures contracts are settled on a monthly or quarterly basis, depending on contract specifications. At settlement, the contract price converges with the spot price, and all open positions expire. Perpetual futures contracts are widely used by crypto derivatives exchanges and are designed to be similar to traditional futures contracts. However, perpetual futures contracts have one key difference.

Unlike traditional futures contracts, perpetual futures allow traders to hold contracts in perpetuity, without expiration dates or the need to track unused delivery months. For example, a trader can keep a short position open indefinitely until the position is closed. In this way, trading perpetual futures is very similar to trading spot market pairs. However, perpetual futures do not use a traditional method of settlement. Because of this, crypto exchanges have created a mechanism to ensure that perpetual futures contract prices match the index price. This mechanism is called the Funding Rate.

3. What is the Funding Rate?

A Funding Rate is a periodic payment made to long or short traders based on the price difference between the market price of the perpetual contract and the spot price. When the market is bullish, the Funding Rate is positive and long traders pay a funding fee to traders who are short. Conversely, when the market is bearish, the funding rate is negative and short traders pay the funding fee to long traders.

ApolloX does not charge any fees for funding rate transfers, as funds are transferred directly between users. Funding fees on ApolloX are taken every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC. Traders are only liable for funding payments in either direction if they have open positions at the predetermined funding times. Traders who do not have an open position will not pay or receive any funding.

Note: There is a 15-second deviation between the actual time and the time the funding fee is taken. For example, if you open a position at 16:00:05 UTC, you may still be charged a funding fee. Therefore, it is important that you pay attention to the exact time you open a position.

4. How is the Funding Amount calculated?

Funding Amount = Notional Value of Positions × Funding Rate

Notional Value of Position = Mark Price × Number of Contracts

5. How is the Funding Rate determined?

There are two components to the Funding Rate: the Interest Rate and the Premium. The Premium explains why the price of a perpetual contract converges with the price trend of the underlying asset. ApolloX uses a fixed interest rate within the funding rate, with the assumption that the interest earned by holding cash is higher than the interest earned by holding the BTC equivalent. By default, the interest rate is set at 0.03% per day (0.01% per funding settlement interval) and may change based on market factors, such as the Federal Funds Rate.

During periods of high volatility, there may be a significant difference between the price of the perpetual contract and the Mark Price. At such times, the Premium Index will be used to enforce price convergence between the Futures market price and the Spot price. You can view the Premium Index history under [Info].

The Premium Index is calculated separately for each contract. The formulas are as follows:

  • Premium Index (P) = [Max (0, Impact Bid Price – Price Index) – Max (0, Price Index – Impact Ask Price )] / Price Index

  • Impact Bid Price = Average fill price to execute the Impact Margin Notional on the Bid Price

  • Impact Ask Price = Average fill price to execute the Impact Margin Notional on the Ask Price

  • Price Index: A comprehensive index based on a basket of prices from the major spot exchanges, weighted by their relative volume.

  • Impact Margin Notional (IMN) for USDT Perpetual Futures Contracts: The notional available to trade with 200 USDT worth of margin (price quoted in USDT); IMN = 200 USDT / Initial Margin Rate at maximum leverage.

  • Aggregated Impact Margin Notional: When the number of pending orders in the market is insufficient, ApolloX will will introduce the Aggregated Impact Margin Notional. The calculation of the Impact Margin Notional is done by aggregating order books from multi platforms with the formula as shown: Aggregated Impact Margin Notional= IMN by aggregating order books from multi platforms / Initial Margin Rate at maximum leverage.

6. Calculate the Impact Bid/Ask Price

Assume that the bid-side of the order book is as follows:

If the cumulative commission amount quoted at Level x is greater than the IMN: Contract multiplier × ∑px × qx > IMN, and if the cumulative commission quoted at Level x-1 is less than the IMN: Contract multiplier × ∑px-1 × qx-1 < IMN, then the Impact Bid Price at Level x is included in the calculation.

Formula:

Impact Bid Price = IMN / (IMN – Contract Multiplier × ∑px-1 × qx-1) / px + Contract Multiplier × ∑qx-1)