Settlement schedule
Funding payments settle at fixed intervals depending on the market’s funding period:In the event of extreme market volatility or for new listings, Orderly reserves the right to
adjust the funding interval (e.g. from 8h to 4h, 2h, or 1h), as well as update the Funding Rate
Cap and Floor.
Rate components
The Funding Rate is determined by two components: the Premium and the Interest Rate.Premium calculation
The Premium measures the deviation between the futures price and the Index Price (i.e. the basis). To avoid manipulation, Orderly uses Impact Bid and Ask prices rather than the simple best bid/ask:- Impact Bid Price — the average fill price to execute a sell order with the size of the Impact Margin Notional.
- Impact Ask Price — the average fill price to execute a buy order with the size of the Impact Margin Notional.
- Impact Margin Notional — the notional available to trade with 1,000 USDC of collateral at the maximum leverage of the specific market. For example, for NEAR-USDC with 10x max leverage, the Impact Margin Notional is 10,000 USDC.
Piecewise linear funding function
For each funding period, Orderly calculates the Premium every 15 seconds. The number of sample points depends on the funding period:
An Average Premium is then computed:
x), allowing faster convergence when prices deviate significantly:
In the Low range, the function equals the premium itself. In the Medium range, each additional basis point of deviation counts double. In the Large range, it counts 4x — pushing the funding rate to correct faster.
Interest Rate
The second component is the Interest Rate:Final Funding Rate
The final Funding Rate combines the Premium function and Interest Rate, subject to per-market caps and floors:Cap Funding and Floor Funding values are specific to each perpetual market. In extreme market conditions, Orderly may adjust these parameters to allow the higher-slope regions of the funding function to take effect.
Funding period
The Funding Period for Orderly perpetual futures can be 1 hour, 4 hours, or 8 hours depending on the market. The Funding Rate is expressed on the basis of the funding period for each market.Accrued Funding
At each funding settlement time, a position accrues the following funding:- Positive funding rate: longs pay shorts
- Negative funding rate: shorts pay longs