Funding
How the funding rate is set every hour, who pays whom, and when funding is settled into your position.
Funding keeps the perpetual price close to the index price.
The rate
Through the hour, Titan samples how far the order book's prices sit from the index. Every hour, those samples set the funding rate, clamped to a maximum. Each hour's rate is one eighth of an 8-hour rate, capped at 4% per hour.
- When the rate is positive, longs pay shorts.
- When it is negative, shorts pay longs.
Funding is paid between traders. Titan does not take a cut of it.
When it is settled
Funding accrues on every open position. It is settled into your position the next time the position changes (a fill, a leverage change or a margin transfer) and when it is closed or liquidated.
Until then, the pending amount is already counted in your margin, your liquidation price and your account value. Funding owed to you becomes withdrawable once it has been settled.
What gets recorded
Every settlement is committed as an event leaf in your history.