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

# Funding Rates

Perpetuals have no expiry. Funding keeps their price anchored to the underlying: when the rate is **positive, longs pay shorts**; when it is **negative, shorts pay longs**.

### How Imperial funding works

* **Rate source.** Imperial's rate follows the hedge venue's funding rate for the same market, so holding a position on Imperial costs about the same as holding it on the venue.
* **Continuous accrual.** Funding accrues every second for exactly as long as your position is open. There are no hourly snapshots to time around.
* **Charged on entry notional.** Funding is calculated on your position's entry size in USD.
* **Settled on change.** Accrued funding is settled into your balance when you increase, reduce, close or are liquidated. Until then it counts against your equity, and so toward liquidation.
* **Capped.** The rate can't exceed **0.05% per hour** in either direction.
* **Stale-rate protection.** If the rate stops updating for more than 2 hours, accrual pauses instead of charging you on an outdated rate.

The trade screen shows Imperial's rate per day. The hedge venue's own rate may be shown alongside it for reference; that is not an extra charge.

### Example

You are long $20,000 of ETH and the rate is +0.001% per hour. Over 24 hours you pay 20,000 × 0.001% × 24 = **$4.80**, settled when you next change or close the position.