The futures financing rate consists of two components:

▪️interest rate;

▪️premium (premium-index).

The Binance platform has a fixed interest rate of 0.03% per day - 0.01% for each 8-hour interval. Also available on the exchange are contracts with a zero interest rate - BNB/USDT and BNB/BUSD.

Only the premium changes every 8 hours. And it serves as the main factor for reducing decorrelation:

▪️between the cost of a perpetual futures and the underlying asset;

▪️between the futures price and the marking price.

A high spread between these indicators leads to an increase in the premium. On the other hand, if the premium decreases, then the current spread is at a low level.

The premium index is calculated separately for each contract. In this case, two indicators are taken into account:

▪️A price index that displays the average spot rate on major exchanges.

▪️Impact Margin Nominal (IMN) is the nominal position size available for trading with a margin of 200 USDT (or 200 USD).

Detailed information on how to calculate the financing rate can be found in the help.

The history of changes in the premium index, price index and marking price can be viewed in the report.

In all cases, funding works on the principle of peer-to-peer payments. That is, amounts are transferred directly between user accounts, and the Binance exchange does not charge any commission for this.