$KAIA Current funding rate: -0.0581% (settled every 1 hour). Shorts pay. Simply annualized based on this period, that’s approximately 508.5%.
Funding rates tend to be the first thing to reflect which side is getting crowded.
Perpetual contracts have no expiry date. Funding rates help keep the contract price close to the spot price: longs and shorts periodically pay each other a fee.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price suddenly moves the other way, the risk of cascading liquidations also increases.
If you’re using leverage, first consider whether you can withstand the worst-case scenario, then see what the indicators are telling you.
#KAIA
Just chatting—ultimately, you’re responsible for your own gains and losses.
Funding rates tend to be the first thing to reflect which side is getting crowded.
Perpetual contracts have no expiry date. Funding rates help keep the contract price close to the spot price: longs and shorts periodically pay each other a fee.
The further the rate deviates from normal, the more crowded one side’s positions are. If the price suddenly moves the other way, the risk of cascading liquidations also increases.
If you’re using leverage, first consider whether you can withstand the worst-case scenario, then see what the indicators are telling you.
#KAIA
Just chatting—ultimately, you’re responsible for your own gains and losses.