Changes to funding rate calculation July 2, 2025

Dear Flipstars,

Effective July 2, 2025 at 04:00 UTC, there will be a change in the funding fee calculation for all perpetual swaps listed in Flipster. 

The formula will be as follows:

Funding Rate = Avg(P) + clamp[Avg(I) - Avg(P), 0.05%, -0.05%] + small adjustment term*

Avg(x) is defined as time-weighted average of x for the 8-hour moving window:

• Avg(x) = (1 * x(1) + 2 * x(2) + ... + 480 * x(480) ) / (1 + 2 + ... + 480) where x(1) is the value at the first minute.
• For example, Premium Index(5) denotes the premium at the fifth minute of an 8-hour window.

Note 1: [Avg(I) - Avg(P)] has a damper of +/-0.05%. Therefore, [Avg(I) - Avg(P)] is within +/-0.05%, then Funding Rate = P + (I - P) = I. On the other hand, if Avg(P) goes up or down excessively, the funding rate can be adjusted to Avg(P) + 0.05% / Avg(P) - 0.05% to promote the convergence between the market price of a perpetual swap and its mark price Funding rate.

*Small adjustment term accounts for extreme position skewness in the market

For comprehensive information regarding this update and its implications, please refer to the following resources:

• Funding Fees Explained

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