MGBX Perpetual Futures Funding Rate Guide – MGBX Support Center

I. What Is the Difference Between Funding Rate and Funding Fee?

Funding Rate: The rate applied at a specific settlement, which can be positive, negative, or zero.

Funding Fee: The actual amount paid or received, calculated based on the position value at settlement and the applicable funding rate.

Funding fees are generally settled between long and short position holders. The payment direction depends on the funding rate:

• Positive funding rate: Long position holders pay, and short position holders receive.

• Negative funding rate: Short position holders pay, and long position holders receive.

• Zero funding rate: The funding fee calculated at this rate is zero.

II. How Are Funding Fees Calculated?

For USDT-margined perpetual contracts, the funding fee can be calculated as follows:

Funding Fee = Position Notional Value at Settlement × Applicable Funding Rate

The method for determining the position value and converting the position quantity depends on the settlement rules of the respective contract. If the quantity is displayed in contracts, the contract size must also be taken into account.

Calculation Example

Assume the position value at settlement is 10,000 USDT and the actual funding rate is +0.01%. The funding fee for this settlement will be 1 USDT. If you hold a long position, you will pay 1 USDT. If you hold a short position, you will receive 1 USDT.

If the funding rate changes to −0.01%, the payment direction is reversed: short position holders pay 1 USDT, while long position holders receive 1 USDT. The figures above are for illustrative purposes only.

III. When Does Settlement Take Place?

Please refer to the funding rate, next settlement time or countdown displayed on the corresponding MGBX futures page, as well as the latest official announcements.

Settlement intervals may vary across different futures. Previous MGBX futures announcements have included settlement intervals of every 4 hours and every 8 hours. Therefore, the settlement schedule of one trading pair should not be assumed to apply to all futures The platform may also adjust the relevant parameters in the future.

Whether you participate in a particular settlement depends on your actual position status at the settlement time and the applicable system rules. Do not assume that placing an order immediately before or after the countdown reaches zero will guarantee that you receive or avoid funding fees.

IV. Is the Estimated Funding Rate the Final Funding Rate?

The estimated funding rate may change with market conditions and does not represent the final rate for the current settlement. The rate may also change from positive to negative, meaning that the party originally expected to receive funding fees may instead become the paying party.

When verifying funding fees, always refer to the actual funding rate at the settlement time, the position value, and the funding transaction records. Do not rely directly on an estimated rate viewed earlier.

V. How to Check Settlement Records?

Before trading, check the funding rate and next settlement time on the futures trading page.
- Click the「Funding Rate」section to view the current funding rate and historical funding rate records.

While holding a position, monitor changes in position value, available balance, and margin.
After settlement, check the 「Funding Fee」entry, timestamp, and payment or receipt amount in the funding transaction history or fee records of your futures account.

VI. Frequently Asked Questions

Can I Still Pay Funding Fees If I Close My Position Shortly After Opening It?

Yes. Funding fees depend on whether your position is held at the settlement time, rather than being charged linearly based on the number of minutes you hold a position.

Are Funding Fees Calculated Based on Margin?

Funding fees are generally calculated based on the position's notional value. For the same position value and funding rate, the funding fee does not directly change solely because of a difference in leverage. However, using leverage to increase your position size will increase the corresponding funding fee.

Does Receiving Funding Fees Guarantee a Profit?

No. Losses from price movements, trading fees, and slippage may exceed the funding fees received. Paying funding fees may also reduce your available balance and increase margin pressure. Always assess funding fees in the context of your overall position risk.