How often funding settles and how to annualize it
Exchanges settle funding on different schedules, so the same rate can mean different things. This page explains how settlement works, how the 8h equivalent and the annualized rate are calculated, and which figures are estimates from current rates.
Funding rates
Live example
- Current period rate
- Long 10,000 USDT
- Short 10,000 USDT
Converted at the current rate, not a return
Highest funding rates
View funding rate ranking| Coin | Exchange | 8h rate | Current period rate | Funding interval | Next settlement |
|---|---|---|---|---|---|
Data as of
Lowest funding rates
Settlement
You pay or receive a period’s funding fee only if you still hold the perpetual position at the settlement time. The amount is the position’s notional value times the funding rate for that period. A position closed before settlement takes no part in that period.
The rate shown before settlement is live. Many exchanges update it as the market moves and fix it only at the settlement time.
8h equivalent
Z Market Lab converts each leg’s rate from its own settlement interval to a rate per 8 hours, the 8h equivalent. The conversion is proportional to time:
| Native rate | 8h equivalent |
|---|---|
| 0.01% every 8 hours | 0.01% |
| 0.01% every 4 hours | 0.02% |
| 0.01% every hour | 0.08% |
Each leg’s native rate, settlement interval and per-period floor and cap are still shown as the exchange reports them. On the Funding rates page, Rate overview has a Per period option that shows each exchange’s rate without conversion.
Net funding
The net funding of a pair is the short leg’s rate minus the long leg’s rate, each converted to 8 hours first. A spot leg counts as 0. A positive value means holding the pair receives net funding every 8 hours. Legs with different settlement intervals compare directly. The market monitor’s column, filters, alerts and history all use this one measure.
Annualized
The annualized rate is the 8h equivalent times 1095, the number of 8-hour periods in a year. It is simple interest and assumes the current rate holds. Example: Net funding 8h of 0.01% is about 10.95% annualized.
Rates change every period. Use the annualized rate only to compare one opportunity with another.
Settled data
On the Funding rates page, the Cross-exchange arbitrage and Spot-perp arbitrage tabs show current and settled data side by side. The items are:
| Item | |
|---|---|
| Net funding 8h | The current 8h equivalent net funding. |
| Annualized | Net funding 8h × 1095. |
| Last 7 days, cumulative | Net funding fee actually settled on the two legs in the last 7 days. |
| Positive periods | Of the last 21 eight-hour windows: windows with positive net funding / windows where both legs have settlement records. Windows split at 00:00, 08:00 and 16:00 UTC. |
| Next settlement | Time until the earliest next settlement of the two legs. |
A high annualized rate with a low 7-day total means the funding diff opened up only recently.
In ZML Trade
While a combo holds a position, each funding settlement is booked into its PnL. With a Funding fee paid alert set, Trade alerts you when a position is open and net funding, normalized to 8 hours, is a cost of at least the size you set. The alert is an estimate from current rates, not money already charged.
For who pays whom and how the rate is set, see What is the funding rate.