The purpose of the fund fee: to promote the firm price to better track the index price through the cost compensation method between long and short positions.
BKG Exchange does not charge any funding fees; funding fees are charged between users.
Collection method: The funding fee is swapped between long and short positions every 8 hours, at UTC+8 00:00, UTC+8 8:00 and UTC+8 16:00. Funding fees will only be charged or paid if the position is held at these points in time. If the position is closed before the fee time, then no funding fee will be charged or paid.
When the funding rate is positive, longs pay shorts. When the funding rate is negative, shorts pay longs. When holding a position in both directions, only the funding fee for the naked position is calculated.
Funding Fee Calculation
Funding fee = position notional value * funding rate
Funding Rate Calculation
Funding rate (F) = premium index (P) + clamp (interest rate (I) - premium index (P), 0.05%, -0.05%)
in:
Premium Index (P) = ( Max ( 0 , depth-weighted bid price - mark price) - Max ( 0 , mark price - depth-weighted ask price)) / spot price + reasonable basis of mark price
Interest rate (I) = (pricing interest rate index - base interest rate index) / funding rate interval