How does funding work on Koo?
Funding is a periodic payment between long and short perpetual positions. Koo’s current open perpetual markets settle funding every eight hours at 00:00, 08:00 and 16:00 UTC, while the actual rate and cap vary by instrument and time.
Key Information
- Positive rate: Longs pay shorts
- Negative rate: Shorts pay longs
- Goal Difference delivery contracts have no funding
Why funding exists
Funding helps keep a perpetual contract near its index price by transferring value between long and short holders.
Koo does not classify this transfer as a platform trading fee.
Schedule and applicability
Ordinary perpetuals and Market Share perpetuals use funding.
Goal Difference delivery contracts do not use funding.
Formula and example
- Funding payment = Position notional × Settlement funding rate.
- Illustrative example: A 10,000 USDC long position at +0.01% pays 1 USDC at settlement. This does not imply a fixed rate.
Changing funding rates
Rates can be positive, negative or near zero and can change between periods.
Check your market’s current funding rate, next settlement time and rate cap before holding a position through settlement.
FAQ
No. It is a transfer between long and short perpetual positions.