Funding Rates

Funding Rates

Funding keeps perp prices anchored over time. Funding is peer-to-peer: it transfers value between longs and shorts.

Dreamcash funding aims to reflect margin loan economics at retail brokers (e.g., Robinhood) at around 5.5% per year as default.

What funding is

Funding is a periodic payment based on whether the perp is trading rich or cheap vs the oracle price. This is typically driven by temporary supply and demand dynamics for leverage.

Typical interpretation:

  • Perp above oracle→ funding positive → longs pay shorts

  • Perp below oracle → funding negative → shorts pay longs

Examples

For a 100,000 USDT notional position:

  • at +5 bps/hour → pays 100,000 × 0.0005 = 50 USDT/hour

  • at −3 bps/hour → receives 100,000 × 0.0003 = 30 USDT/hour

Practical tips

  • Funding can dominate PnL for longer holds.

  • Check “next funding” before holding high leverage through Off Hours.

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