A quick note: the latest funding rate for $KAIA is -0.285% (settled every 4 hours), with shorts paying. Annualized based on this period, that’s roughly 624.1%.
People often ask what the funding rate means. Here’s how I understand it.
Funding is calculated as the position’s notional value × the rate: for a position with a notional value of 10,000 U, a rate of 0.01% means 1 U is paid or received per funding interval.
The rate should generally be viewed alongside open interest and price: when the rate is high and open interest is surging, the market is often more crowded.
Extreme readings often signal greater volatility. At times like these, it’s better to reduce leverage rather than make a big bet.
Be careful of the risks, and make your own decisions.
People often ask what the funding rate means. Here’s how I understand it.
Funding is calculated as the position’s notional value × the rate: for a position with a notional value of 10,000 U, a rate of 0.01% means 1 U is paid or received per funding interval.
The rate should generally be viewed alongside open interest and price: when the rate is high and open interest is surging, the market is often more crowded.
Extreme readings often signal greater volatility. At times like these, it’s better to reduce leverage rather than make a big bet.
Be careful of the risks, and make your own decisions.