★Q&A about funding rates

Dear WEEXers,

Q: Where can I find the detailed records of funding rates?
A: It will be charged every 8 hours. The funding rate will be settled at 07:00 / 15:00 / 23:00 (UTC+8) . The place where the funding rate is charged can be found in [Assets] -> Contract [Bill] -> View Funds cost. It will be charged every 8 hours.

The funding rate will be settled at 08:00 /16:00 /00:00 (UTC+8). The platform will charge a funding rate fee when your order extends past the hour. This fee will be deducted from your security deposit.

Q: How is the funding rate charged?
A: WEEX does not profit from the funding rate. It is entirely a transfer between users based on their respective positions.

WEEX's funding rate calculation is the same as other major exchanges, with peaks and troughs generally falling within the range of ±0.03%. If a larger number of users on the WEEX exchange heavily favor one side of the market, the funding rate can experience frequent fluctuations.

Conversely, if a user is on the side that receives the funding rate, they can potentially earn more.

For example: If short positions significantly outweigh long positions, the longs will be on the side receiving the funding rate, while the shorts must pay interest to the longs, resulting in considerable benefits for long positions. 

1.  Monitor the funding rate and collection times.
2.  Close positions or hedge both sides before the funding rate is charged (though hedging carries higher risk and is not recommended).
3. A higher funding rate indicates that most users are trading in the same direction. You can consider contrarian investing by positioning yourself on the minority side, using this as a signal to observe market sentiment.

 

Thank you for your support of WEEX!

 

WEEX Team

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Enjoy trading on WEEX.

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