Funding Rate

What is Funding Rate?

Funding rate is a mechanism in perpetual futures that ensures the futures price stays close to the spot price. Traders pay or receive funding fees at regular intervals (usually every 8 hours).

Supported Exchanges

Exchange	Status	Description
Bybit	✅ Live	Perpetual USDT Futures
KuCoin	✅ Live	Perpetual USDT Futures

Data Collected

For each trading pair (e.g., BTCUSDT), the system collects:

Field	Description	Example
`exchange`	Exchange name	”bybit”
`symbol`	Trading pair (normalized)	“BTCUSDT”
`funding_rate`	Current rate	0.0001 (0.01%)
`funding_rate_interval`	Interval in hours	8.0
`next_funding_rate`	Predicted next rate	0.00012
`next_funding_timestamp`	Next funding time	1734336000

APR Calculation

Formula:
APR = funding_delta × (8760 / epoch_hours)

Where:
- funding_delta = |rate_exchange_A - rate_exchange_B|
- epoch_hours = funding interval (usually 8 hours)
- 8760 = total hours in a year

Example:
- funding_delta = 0.0004 (0.04%)
- epoch_hours = 8
- APR = 0.0004 × (8760 / 8) = 0.438 = 43.8% per year

Data Collection Flow

┌──────────────────────────────────────────────────────────────┐
│                   DATA COLLECTION FLOW                       │
├──────────────────────────────────────────────────────────────┤
│                                                              │
│  1. MATCH PAIRS DISCOVERY (continuous)                       │
│     ├─▶ Fetch all symbols from Bybit                         │
│     ├─▶ Fetch all symbols from KuCoin                        │
│     ├─▶ Find intersection (symbols on both exchanges)        │
│     └─▶ Save matched pairs                                   │
│                                                              │
│  2. FETCH FUNDING RATES (continuous)                         │
│     ├─▶ For each matched pair:                               │
│     │   ├─▶ Fetch funding rate from Bybit                    │
│     │   └─▶ Fetch funding rate from KuCoin                   │
│     └─▶ Save to database                                     │
│                                                              │
│  3. COMPUTE OPPORTUNITIES (continuous)                       │
│     ├─▶ Compare funding rates between exchanges              │
│     ├─▶ Calculate APR and direction                          │
│     └─▶ Update opportunity list                              │
│                                                              │
└──────────────────────────────────────────────────────────────┘

Next Steps

Learn about Trading Modes
Understand Profit Calculation