Calculate crypto futures funding costs over time
Perpetual futures use funding rates to keep the contract price close to spot. Longs pay shorts when the rate is positive, and vice versa.
Funding is typically settled every 8 hours (3 times per day). A rate of 0.01% means you pay 0.01% of your position value every 8 hours.
Annualized, a 0.01% rate per 8 hours equals about 10.95% per year — a significant cost for long-term positions.
