Funding Rate
Since, trade for a common perpetual future i.e., BTC/USD could be happening at so many different exchanges, a price divergence could happen due to different markets and their supply & demand in that specific market platform. In order to cover those price differences and make them in line in all of these scattered markets, a process called funding payment is introduced. Funding payments help converge the prices of futures assets to an index/mark price.
PerpDEX calculates the price difference to distribute funding payments every hour of the day. If there's a positive funding rate, long position holders will pay and short position holders will receive, and vice-versa.
The funding rate is calculated via the following equation
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