Funding settlement
Definition
Funding settlement is the moment when eligible open perpetual positions pay or receive the applicable funding amount.
How funding settlement works
Funding settlement is the moment when eligible open perpetual positions pay or receive the applicable funding amount.
Timing a close requires checking the funding cutoff.
Example
Suppose these funding events occur in a teaching account: a position receives 3 USDT at a settlement and later pays 5 USDT; its net funding cost is 2 USDT.
Common mistakes
- A predicted rate is not a guaranteed amount until the applicable settlement.