Trading Fee Rate
Maker (pending orders) Fee: 0.02%
Taker (filled instantly) Fee: 0.06%
Funding Rate
2.1 What Is the Funding Rate?
The funding rate is a periodic payment exchanged between traders holding long and short positions, based on the price difference between the perpetual contract and the spot market. In a bullish market, the funding rate is positive, and long position holders pay funding fees to short position holders. In a bearish market, the funding rate is negative, and short position holders pay funding fees to long position holders.
On the Echobit derivatives trading platform, funding fee calculation intervals may vary by cryptocurrency. To view the funding rate interval for a specific trading pair, go to the contract trading interface, select the desired cryptocurrency, and click the Funding Rate & Countdown Timer in the top-right corner to see detailed information.
2.2 How Are Funding Fees Calculated?
The funding fee is calculated using the following formula:
Funding Fee = Position Notional Value × Funding Rate
Where:
Position Notional Value = Mark Price × Position Size
Factors Determining the Funding Rate
The funding rate consists of two components: interest rate and premium. The premium component is the key factor that ensures the perpetual contract price converges toward the underlying asset price.
Echobit adopts a fixed interest rate, assuming that holding cash equivalents yields a higher return than holding BTC equivalents. The preset interest rate is 0.03% per day (or 0.01% per funding interval), and it may be adjusted based on market conditions (such as changes in the Federal Funds Rate).
When there is a significant price deviation between the perpetual contract and the mark price, a Premium Index is applied to enforce price convergence. The premium index is calculated individually for each instrument using the following formula:
Premium Index (P) =
[Max(0, Impact Buy Price − Spot Price) − Max(0, Spot Price − Impact Sell Price)] / Spot Price
Where:
Impact Buy Price: The price required to buy the impact notional amount
Impact Sell Price: The price required to sell the impact notional amount
The Impact Notional Amount refers to the USDT value tradable with 200 USDT of margin and is preset to 4,000 USDT.
Echobit calculates the premium index every second and applies a time-weighted average of all index values before the funding timestamp.
Funding Rate Formula
Funding Rate (F) = P + clamp(I − P, −0.05%, 0.05%)
Where:
F = Funding Rate
P = Premium Index
I = Interest Rate
If the difference between the interest rate (I) and the premium index (P) is within ±0.05%, then:
F = P + (I − P) = I
In this case, the funding rate equals the interest rate.
2.3 Echobit Funding Fee Settlement Schedule
Echobit adopts a periodic funding fee settlement mechanism for perpetual futures contracts. Depending on market conditions and the specific contract, funding fees may be settled every 1 hour, 2 hours, 4 hours, or 8 hours.
The applicable settlement interval and the countdown to the next funding event are displayed on the future trading page. Users should refer to the Funding Rate & Countdown Timer for the most up-to-date information.
Important Notes
- Funding fees are exchanged directly between traders who hold positions at the funding timestamp.
- Echobit does not charge or retain any portion of funding fee payments.
- Funding rates may vary depending on market conditions.
- Users should review the funding rate and settlement countdown before opening positions.
-
If a position is closed before the funding settlement time, no funding fee will be paid or received for that settlement cycle.
Echobit Official Channels
Website: http://echobit.com/
Linktree: https://linktr.ee/Echobit_Exchange
Twitter: https://x.com/EchobitExchange
Telegram: https://t.me/EchobitOfficial
Facebook: https://www.facebook.com/EchobitOffical
Risk Disclaimer
Cryptocurrency investments are subject to high market risk and price volatility. You should only invest in products that you are familiar with and fully understand the associated risks.
Before making any investment decisions, please carefully assess your investment experience, financial situation, investment objectives, and risk tolerance, and consider seeking advice from an independent financial advisor.
The information provided in this document is for informational purposes only and should not be considered financial, investment, or trading advice. Past performance is not indicative of future results. The value of your investments may fluctuate, and you may lose part or all of your invested capital.
You are solely responsible for your investment decisions. Echobit shall not be liable for any losses or damages arising from your investment activities.
