How to compare funding rates: intervals, direction and position costs
Compare the same perpetual contract and settlement currency, then check the interval and whether you are long or short. An identical percentage can produce different payments when settlement schedules differ.
With a negative rate, payment direction reverses.
Calculate one complete day
Assume a USDT linear perpetual position worth 10,000 USDT, a constant +0.01% funding rate, and a holding period covering every settlement in the next full 24 hours. An eight-hour schedule has three settlements; a four-hour schedule has six. Each payment is 10,000 × 0.01% = 1 USDT. A long pays 3 USDT or 6 USDT respectively. A short receives the corresponding amount. This is a hypothetical comparison, not a current quote.
Worked example · not a live quote
Same rate, different settlement counts
Direction and position value matter
With a negative rate, payment direction reverses. At −0.02%, the same long receives 2 USDT per settlement and the short pays 2 USDT. Use position value, not the margin deposited: 1,000 USDT of margin supporting a 10,000 USDT position does not reduce the funding base to 1,000. Inverse contracts use different valuation rules.
Normalize the interval, then check the assumptions
The 24-hour equivalent is rate × 24 ÷ interval hours. Multiplying by 365 gives a simple annualized equivalent, without compounding. A difference between 10% and 6% is four percentage points. Neither conversion predicts future fees: the rate, position value and interval may change. Actual charges depend on holding a position at settlement, rather than simply on elapsed hours. Near-settlement order processing also matters.
Check the actual statement
An estimated next rate, a historical settled rate and an account payment are different records. A sampled observation is not evidence that your account paid that amount. Use the venue’s transaction history to verify actual charges. The examples assume constant values and full participation in the stated settlements.
Before comparing
- Confirm the contract and settlement currency.
- Check the current rate, interval, next settlement and time zone.
- Enter position value and choose long or short.
- Use recent observations collected close together.
- Add trading fees and execution costs separately; funding receipts are not net profit.
Related reading: How to read exchange API uptime and incident records · Clock offset and quote age: how to interpret timing data · Market-order costs: trading fees, spread and average fill price
Rules and sources
Bybit · Funding fee calculation · Measurement method · About this site
These examples are hypothetical, not live prices. Check venue rules and account records for actual charges or execution.
Other guides
How to read exchange API uptime and incident records
Uptime describes the share of successful requests to particular endpoints over a particular period and network route. It does not establish whether you can place an order, withdraw funds or trust a venue with assets.
Clock offset and quote age: how to interpret timing data
A fast response can contain an old quote. Round-trip latency, clock offset and quote age describe different parts of a request. Mixing them can make a clock mismatch look like a delayed market feed.
Market-order costs: trading fees, spread and average fill price
A fee schedule covers only part of an execution comparison. Price deviation depends on direction, size and available depth. Keep that estimate separate from your account’s trading fee and use the same benchmark across venues.