Why perpetuals use funding
A dated future has a settlement date. A perpetual has no scheduled expiry, so funding creates an incentive that helps keep its price near the underlying reference market. A venue’s calculation can include both a price premium and an interest component. Funding is not simply a prediction of the next price move.
In the usual sign convention, a positive rate means longs pay shorts; a negative rate means shorts pay longs. Gobi simulates the resulting charges and credits using virtual funds. They are separate from the simulated fee for filling an order.
A simple funding calculation
Illustrative one-interval payment
Assume a position is worth $2,000 for the funding calculation and the rate for that interval is +0.01%. The payment is $2,000 × 0.0001 = $0.20. A long pays $0.20; a short receives $0.20. If the rate were −0.01%, the direction would reverse.
Use the full position value, not just the margin. If the position above uses $400 of virtual margin, calculating funding on $400 would understate the payment. The example rate is hypothetical and is not Gobi’s current rate.
The exact valuation reference and settlement rules belong to the venue. Hyperliquid uses quantity multiplied by the oracle price for its funding notional, and pays funding hourly. Its quoted formula uses an eight-hour rate that is divided for hourly settlement. See Hyperliquid’s funding documentation for the calculation.
An hourly estimate is not a daily bill
Never compare two rates without checking their intervals. In Gobi, the open position’s Funding row shows an hourly estimate and whether you pay or earn. A displayed hourly cost multiplied by 24 is only a scenario that assumes the rate and position value stay unchanged.
Funding can change sign. A credit today does not make a position safe: an adverse price move can exceed the credit. Funding payments can also affect the margin available to support a position.
Practice reading funding in Gobi
- Open a virtual position and note the Funding estimate and pay/earn label.
- Note the position size, direction, and current time.
- Revisit the position and its activity after a funding entry appears. Compare recorded amounts with your earlier estimate.
- Explain any difference using changes in the rate, position value, or time held.
For the screen-by-screen context, read understanding positions and funding in Gobi. All amounts in this exercise remain virtual.
Adapted from Gobi’s in-app lessons and practice flows. Examples are educational and use virtual funds. They are not investment advice or forecasts.