OKX perpetual contracts use a funding fee mechanism to anchor the contract market price to the spot price. Funding fees are collected every 8 hours at 08:00, 16:00, and 24:00 HKT daily. Users only pay or receive funding fees if they hold positions at these specific times. Closing positions before the fee collection time exempts users from paying funding fees.
👉 Learn how OKX funding fees work
*Funding Fee = Position Value × Current Funding Rate
- Positive rate: Long positions pay short positions
- Negative rate: Short positions pay long positions
Funding Fee Collection Methods
Cross-Margin Mode
For single-currency margin: Deducted directly from available margin in the cross-margin account
For multi-currency margin: Deducted from effective margin, limited to maintaining 100% margin ratio
Isolated Margin Mode
- Primary deduction from transferable balance in cross-margin account
If insufficient, remaining amount deducted from position's fixed margin
- Maximum deduction maintains 100% margin ratio
Key Features of OKX Funding Fees
- Automatic price anchoring mechanism
- 8-hour collection cycles
- Bidirectional payment structure
- Margin protection limits
Frequently Asked Questions
Why do perpetual contracts have funding fees?
Funding fees maintain price convergence between perpetual contracts and spot markets by incentivizing arbitrage when premiums occur.
How is the funding rate determined?
The rate fluctuates based on the premium/discount between contract and spot prices, calculated using OKX's proprietary formula.
Can funding fees be negative?
Yes, negative rates occur when contracts trade at a discount to spot prices, causing shorts to pay longs instead.
What happens if I can't pay the funding fee?
OKX implements protective measures:
👉 Margin protection details
- Cross-margin: Stops at 100% margin ratio
- Isolated-margin: Limits position liquidation
Do funding fees apply to all contract types?
No, this mechanism specifically applies to perpetual contracts without expiration dates. Quarterly/settlement contracts operate differently.
Professional Trading Considerations
- Factor funding cycles into position timing
- Monitor rate trends during high volatility
- Balance fee costs against trading strategy
Disclaimer: This content represents the author's perspective only, not OKX's official position. It provides general information without constituting investment advice. All trading decisions remain the user's responsibility.