Skip to content

Annualized Funding Rate

An annualized funding rate expresses a periodic perpetual futures funding rate as an estimated annual rate. It makes funding levels with different intervals easier to compare.

Why it matters to you

A funding rate can look very small when viewed for a single funding interval but become substantial if similar conditions persist over a long period. Annualizing the rate gives traders a more intuitive way to understand the scale of funding. However, funding rates constantly change, so an annualized figure is not a prediction of what a trader will actually pay or receive over a year.

See the perpetuals front

The tools, the live market and the course.