> For the complete documentation index, see [llms.txt](https://docs.yellow.pro/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yellow.pro/fees/funding-fees-explained.md).

# Funding Fees Explained

Funding fees apply **only to Perpetual trading** and are separate from trading fees. Funding keeps perpetual contract prices close to the underlying market price, and is **exchanged directly between traders** — Yellow\.pro does not collect it.

## What Is a Funding Fee?

A payment exchanged between long and short traders, depending on the funding rate:

* **Positive rate:** long positions pay short positions.
* **Negative rate:** short positions pay long positions.

## When Funding Is Charged

Funding is usually exchanged **every 8 hours** (the interval may be shorter for highly volatile tokens). It only applies if you hold an open position **at the funding timestamp** — close before funding and no fee is exchanged.

## How Funding Rates Work

Rates are dynamic and change continuously based on market demand, the long/short imbalance, and the difference between the perpetual price and the spot price. `Funding Fee = Position Value × Funding Rate`.

> **Long pays (positive rate):** a 10,000 USDT long at +0.01% pays 10,000 × 0.0001 = **1 USDT** to shorts. **Short pays (negative rate):** a 10,000 USDT short at −0.01% pays **1 USDT** to longs.

## Where to Check Funding

The Perpetual trading page shows the current funding rate, the next funding countdown, who pays at the next timestamp, and previous rates. Funding history is under the Transaction History section on the Perpetual trading page.

## Important Things to Know

* Funding applies **only to Perpetual trading** — Spot does not use funding.
* Funding is **different** from trading fees and blockchain network fees.
* Funding is exchanged **between traders**, not collected by Yellow\.pro.
* Your position must be open at the funding timestamp to pay or receive funding.

## Related Articles

* [Trading Fees (Maker & Taker)](/fees/trading-fees.md)
* [What is Perpetual Trading?](/perpetual-trading/what-is-perpetual-trading.md)