$KMNO ｜Funding rate: -0.0861%｜Shorts pay
Before discussing funding, first understand the funding rate.
When the funding rate is positive, longs pay shorts; when it’s negative, the reverse is true: shorts pay longs.
Deeply negative funding rates are sometimes common when shorts are crowded. One often-mentioned risk is that shorts may be forced to cover, pushing prices higher—but that’s just one possible scenario.
Keep enough margin for leveraged positions, and don’t let a single wick liquidate your position.
Before discussing funding, first understand the funding rate.
When the funding rate is positive, longs pay shorts; when it’s negative, the reverse is true: shorts pay longs.
Deeply negative funding rates are sometimes common when shorts are crowded. One often-mentioned risk is that shorts may be forced to cover, pushing prices higher—but that’s just one possible scenario.
Keep enough margin for leveraged positions, and don’t let a single wick liquidate your position.