Crypto Futures Funding Rates in Mudrex
When trading Perpetual Futures on Mudrex, you might notice a small line item called the funding rate or funding fee.
This is not a platform charge, but a system that keeps Futures prices in line with the actual market (spot) prices of crypto.
In this guide, we’ll explain what funding rates are, how they work, when they are charged, and how they affect your trades on Mudrex.
What is a Funding Rate?
Perpetual Futures don’t have an expiry date. This means prices can drift away from spot if left unchecked. To fix this, exchanges use a funding rate—a fee that’s periodically exchanged between longs and shorts to bring Futures prices closer to the spot market.
- If the Futures price is higher than the spot price: Longs pay shorts
- If the Futures price is lower than the spot price: Shorts pay longs
The rate depends on
- Your position size
- The funding rate at that timestamp
How Often Are Funding Fees Charged on Mudrex?
On Mudrex, the funding fee is exchanged at regular intervals, not charged by the platform. The intervals vary based on the asset:
- 8-hour intervals for most major coins (BTC, ETH, etc.)
- 4-hour or 1-hour intervals for more volatile or less liquid assets
You can see the exact interval for each pair directly on the trading screen.
Why Different Funding Intervals?
Shorter intervals (1h or 4h) help the market adjust faster. This is useful when:
- The asset is highly volatile
- There’s low liquidity
- Quick corrections are needed to reduce price manipulation
Does Mudrex Keep These Fees?
No. Mudrex does not charge or keep any portion of the funding fee.
It’s a peer-to-peer transfer between traders—from the side that’s crowding the trade to the side that’s balancing it.
How Can You Benefit from Funding Rates?
If you’re on the receiving side of the funding, you earn a fee just for holding your position.
Example: If you’re short during a time of strong bullish sentiment (positive funding rate), you could earn passive income every few hours.
Why Do Funding Rates Sometimes Spike?
Funding rates can rise sharply—sometimes even beyond 0.2%—due to:
- Extreme one-sided sentiment (e.g., everyone going long)
- Rapid price rallies or crashes
- Low liquidity in some altcoins or new listings
These spikes act as signals: the market may be overheated or unstable.
Where Can You Check the Funding Rate?
You’ll find:
- The current funding rate
- The countdown to the next funding timestamp
→ Just below the chart on any Perpetual Futures contract page on Mudrex.
Will You Be Charged if You Exit Early?
No. If you close your position before the funding timestamp, you will not pay or receive any funding fee for that interval.
Can Funding Rates Be Negative?
Yes. When Futures trade below spot prices for a while, funding turns negative, and shorts pay longs to restore balance.
What Risks Do High Funding Rates Carry?
- They can reduce your profits over time
- They can cause losses if you hold a position during high-rate periods
- They signal a one-sided market:a possible warning to reduce leverage or avoid overexposure
Final Word
Funding rates are not a hidden fee but a built-in balancing tool in the Perpetual Futures system.
Used well, they can even work in your favour. But it’s important to track them before opening a position, especially in volatile markets.
