Whereas quarterly futures expire, perpetual futures have funding payments every hour. Specifically, every hour, we measure the 1 hour TWAP of the perpetual future and the 1 hour TWAP of the underlying index:
Every long position pays position size * (TWAP of future - TWAP of index) / 24
Every short position receives position size * (TWAP of future - TWAP of index) / 24
This is economically somewhat similar to the future expiring once per day. In particular, if you sell a BTC perpetual future which is trading 0.10% above the underlying index all day, then over the course of the next day you will receive a total funding payment of 0.10%.
You can find historical funding rates here.
Balances of the following coins also count towards collateral, at 0.95 times their latest index prices:
In the event that your USD balance falls below zero, some of your balances in the above coins may be automatically converted to USD, at 0.995 times the latest index price.
FTX Crypto Derivatives Exchange: https://ftx.com
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