{"id":72953,"date":"2025-07-08T12:32:04","date_gmt":"2025-07-08T07:02:04","guid":{"rendered":"https:\/\/mudrex.com\/blog\/?p=72953"},"modified":"2025-07-08T12:47:21","modified_gmt":"2025-07-08T07:17:21","slug":"mudrex-funding-rate","status":"publish","type":"post","link":"https:\/\/mudrex.com\/blog\/mudrex-funding-rate\/","title":{"rendered":"Understanding Funding Rates in Perpetual Futures on Mudrex"},"content":{"rendered":"\n

Crypto Futures Funding Rates in Mudrex<\/h2>\n\n\n\n

When trading Perpetual Futures on Mudrex, you might notice a small line item called the funding rate or funding fee. <\/strong><\/p>\n\n\n\n

This is not a platform charge, but a system that keeps Futures prices in line with the actual market (spot) prices of crypto.<\/strong><\/p>\n\n\n\n

In this guide, we\u2019ll explain what funding rates are, how they work, when they are charged, and how they affect your trades on Mudrex.<\/p>\n\n\n\n

What is a Funding Rate?<\/strong><\/h3>\n\n\n\n

Perpetual Futures don\u2019t have an expiry date. This means prices can drift away from spot if left unchecked. To fix this, exchanges use a funding rate<\/strong>\u2014a fee that\u2019s periodically exchanged between longs and shorts<\/strong> to bring Futures prices closer to the spot market.<\/p>\n\n\n\n

    \n
  • If the Futures price is higher<\/strong> than the spot price: Longs pay shorts<\/strong><\/li>\n\n\n\n
  • If the Futures price is lower<\/strong> than the spot price: Shorts pay longs<\/strong><\/li>\n<\/ul>\n\n\n\n

    The rate depends on<\/p>\n\n\n\n

      \n
    • Your position size<\/strong><\/li>\n\n\n\n
    • The funding rate<\/strong> at that timestamp<\/li>\n<\/ul>\n\n\n\n

      How Often Are Funding Fees Charged on Mudrex?<\/strong><\/h3>\n\n\n\n

      On Mudrex, the funding fee is exchanged at regular intervals<\/strong>, not charged by the platform. The intervals vary based on the asset:<\/p>\n\n\n\n

        \n
      • 8-hour intervals<\/strong> for most major coins (BTC, ETH, etc.)<\/li>\n\n\n\n
      • 4-hour or 1-hour intervals<\/strong> for more volatile or less liquid assets<\/li>\n<\/ul>\n\n\n\n

        You can see the exact interval for each pair directly on the trading screen.<\/p>\n\n\n\n

        Why Different Funding Intervals?<\/strong><\/h3>\n\n\n\n

        Shorter intervals (1h or 4h) help the market adjust faster. This is useful when:<\/p>\n\n\n\n

          \n
        • The asset is highly volatile<\/strong><\/li>\n\n\n\n
        • There’s low liquidity<\/strong><\/li>\n\n\n\n
        • Quick corrections are needed to reduce price manipulation<\/li>\n<\/ul>\n\n\n\n

          Does Mudrex Keep These Fees?<\/strong><\/h3>\n\n\n\n

          No. Mudrex does not charge or keep<\/strong> any portion of the funding fee.
          It\u2019s a peer-to-peer transfer between traders<\/strong>\u2014from the side that\u2019s crowding the trade to the side that\u2019s balancing it.<\/p>\n\n\n\n

          How Can You Benefit from Funding Rates?<\/strong><\/h3>\n\n\n\n

          If you\u2019re on the receiving side<\/strong> of the funding, you earn a fee just for holding your position<\/strong>.
          Example: If you’re short during a time of strong bullish sentiment (positive funding rate), you could earn passive income every few hours.<\/p>\n\n\n\n

          Why Do Funding Rates Sometimes Spike?<\/strong><\/h3>\n\n\n\n

          Funding rates can rise sharply\u2014sometimes even beyond 0.2%<\/strong>\u2014due to:<\/p>\n\n\n\n

            \n
          • Extreme one-sided sentiment<\/strong> (e.g., everyone going long)<\/li>\n\n\n\n
          • Rapid price rallies or crashes<\/strong><\/li>\n\n\n\n
          • Low liquidity<\/strong> in some altcoins or new listings<\/li>\n<\/ul>\n\n\n\n

            These spikes act as signals: the market may be overheated or unstable.<\/p>\n\n\n\n

            Where Can You Check the Funding Rate?<\/strong><\/h3>\n\n\n\n

            You\u2019ll find:<\/p>\n\n\n\n

              \n
            • The current funding rate<\/strong><\/li>\n\n\n\n
            • The countdown to the next funding timestamp
              <\/strong> \u2192 Just below the chart on any Perpetual Futures contract page on Mudrex.<\/li>\n<\/ul>\n\n\n\n
              \n
              \n
              \"\"<\/figure>\n<\/div>\n\n\n\n
              \n
              \"\"\/<\/figure>\n<\/div>\n<\/div>\n\n\n\n

              Will You Be Charged if You Exit Early?<\/strong><\/h3>\n\n\n\n

              No. <\/strong>If you close your position before the funding timestamp<\/strong>, you will not pay or receive<\/strong> any funding fee for that interval.<\/p>\n\n\n\n

              Can Funding Rates Be Negative?<\/strong><\/h3>\n\n\n\n

              Yes. When Futures trade below<\/strong> spot prices for a while, funding turns negative<\/strong>, and shorts pay longs<\/strong> to restore balance.<\/p>\n\n\n\n

              What Risks Do High Funding Rates Carry?<\/strong><\/h3>\n\n\n\n
                \n
              • They can reduce your profits<\/strong> over time<\/li>\n\n\n\n
              • They can cause losses<\/strong> if you hold a position during high-rate periods<\/li>\n\n\n\n
              • They signal a one-sided market:<\/strong>a possible warning to reduce leverage or avoid overexposure
                <\/li>\n<\/ul>\n\n\n\n

                Final Word<\/strong><\/h3>\n\n\n\n

                Funding rates are not a hidden fee but a built-in balancing tool in the Perpetual Futures system.<\/strong>
                Used well, they can even work in your favour. But it\u2019s important to track them before opening a position, especially in volatile markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

                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\u2019ll explain what […]<\/p>\n","protected":false},"author":42,"featured_media":72961,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[2943,2914],"tags":[],"_links":{"self":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts\/72953"}],"collection":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/users\/42"}],"replies":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/comments?post=72953"}],"version-history":[{"count":8,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts\/72953\/revisions"}],"predecessor-version":[{"id":72963,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/posts\/72953\/revisions\/72963"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/media\/72961"}],"wp:attachment":[{"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/media?parent=72953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/categories?post=72953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudrex.com\/blog\/wp-json\/wp\/v2\/tags?post=72953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}