How much does a perpetual funding rate charge or pay you on 8-hour and 1-hour exchanges?
Unlike quarterly futures, crypto perpetual contracts never expire. Instead, exchanges keep the perpetual price anchored to spot through periodic funding payments exchanged directly between long and short traders. When the funding rate is positive, perpetual longs pay shorts; when the funding rate is negative, shorts pay longs.
Crucially, funding is multiplied by your full notional position value, not your initial margin. On a $25,000 BTCUSDT position opened with $2,500 margin at 10× leverage, even the baseline +0.01% 8-hour rate costs $2.50 every 8 hours ($7.50/day or 10.95% annualized on notional — 109.5% annualized on your 10× margin):
| Market regime | 8h funding rate | Daily rate (3×) | Annualized APR (notional) | 7-day cost on $25,000 notional |
|---|---|---|---|---|
| Baseline neutral | +0.010% | 0.030% / day | 10.95% APR | $52.50 |
| Moderate bull bias | +0.025% | 0.075% / day | 27.38% APR | $131.25 |
| Crowded bull euphoria | +0.050% | 0.150% / day | 54.75% APR | $262.50 |
| Extreme altcoin squeeze | +0.100% | 0.300% / day | 109.50% APR | $525.00 |
How much of a swing trade's stop-loss budget can funding drain?
If you hold a directional swing long during a crowded bull market (+0.045% per 8h) for 14 days on a $20,000 position, funding alone drains $378.00 — often exceeding an entire 1R stop-loss budget before price even moves. To size the position and check isolated vs cross liquidation before entering, run your levels through the crypto & perpetual futures position size calculator, or compare multi-day overnight swap costs on FX and gold CFDs in the forex swap calculator.