Insights
Funding Rate
The maintenance cost longs and shorts pay each other in the futures market — an indicator of how lopsided positioning is.
24-Hour Liq
Top 5 By Funding Rate
Bottom 5 By Funding Rate
BTC Funding Rate by Exchange
New to this indicator?
What is the funding rate? It's the fee the crowded side pays the other side between longs and shorts. Above 0 means longs pay shorts — a long-crowded state; below 0 is the opposite. The bigger and longer the skew, the more it's read as a sign the market is overheated.
Why is funding exchanged at all?
It's a mechanism that keeps perpetual futures (futures with no expiry) anchored near the actual coin price. When longs crowd in enough to push the futures price above spot, longs pay shorts a fee to cool the skew. It usually settles every 8 hours.
Does a high funding rate mean a drop is coming?
You can't conclude that. In strong bull markets the price has kept climbing with funding staying high. That said, extremely high funding means longs are very crowded, and there have been cases where even small bad news triggered cascading liquidations and sharp swings.
How should I use it?
Use it as a context gauge for market temperature rather than a standalone trade signal. For example, if the price has spiked and funding has surged too, double-check before chasing the move. Reading it alongside OI and the long/short ratio gives a fuller picture of the skew.