Funding Rates (0.8.4)

Funding Rates in SYMMIO

Perpetual futures never settle, so their price can drift away from the real market price. Funding rates are a small payment exchanged between longs and shorts to keep prices aligned.

If longs are dominating and the perp price is above spot → longs pay shorts. If shorts are dominating and the perp price is below spot → shorts pay longs.

This makes holding the more “advantaged” side a little more expensive, nudging prices back toward the real market value.

How it works on SYMMIO

Every symbol on SYMMIO has it's own funding rate, which is applied at the end of periods, called epochs. When an epoch ends, positions pay (or receive) funding. On the contracts, this cycle's length is defined as the fundingRateEpochDuration. Solvers are responsible for charging funding during the symbol's fundingRateWindowTime, which is a short window either side of the epoch 'flip'.

Example Symbol:

{
  "symbolId": "1",
  "name": "BTCUSDT",
  "isValid": true,
  "minAcceptableQuoteValue": "120000000000000000000",
  "minAcceptablePortionLF": "3000000000000000",
  "tradingFee": "3800000000000000",
  "maxLeverage": "100000000000000000000",
  "fundingRateEpochDuration": "14400", // <- 4 hours
  "fundingRateWindowTime": "420" // <- 7 minutes
}

When funding is applied, the protocol updates the openedPrice of your trade, simulating the effect of charging on the position, without actually transferring any tokens. The event is also logged on-chain, so you can always see when funding was charged and how much it affected your position. You can check the funding charges on your positions here:

Symmio - Explorerexplorer-symmio.vercel.app

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Solvers are responsible for streaming the rates which they are applying in the next epoch, but they don't necessarily stream the epoch durations. Ultimately they can only charge during the window defined by the smart contracts, so always refer to the smart contracts to clarify epoch durations.