Funding

Overview

Our funding mechanism plays a key role in keeping perpetual futures prices aligned with the real-time value of the underlying asset. Unlike traditional futures, perpetual contracts don’t expire, so we use hourly funding payments to maintain price stability.

Here’s how it works:

• Hourly Funding Payments: Every hour, traders either pay or receive a funding fee depending on the difference between the contract price and the spot price.

• Peer-to-Peer System: These payments are exchanged directly between traders—RocketFi doesn’t take a cut.

• Position-Based Fees: The amount you pay or receive depends on your position size, whether you're long or short, and the current funding rate.

📊 What’s the Funding Rate?

The funding rate reflects the gap between the mark price (the fair value of the contract) and the index price (the spot price of the asset).

• If the funding rate is positive, long positions pay short positions.

• If it’s negative, short positions pay long positions.

This system helps keep RocketFi’s perpetual futures market closely tied to the real-world asset price—ensuring fairness, transparency, and stability for all traders.