# Funding Rate ## Definition The **Funding Rate** is a periodic fee exchanged between traders in perpetual futures contracts to ensure that the contract price stays close to the spot price of the underlying asset. It reflects the balance between long and short positions in the market and serves as an incentive mechanism to maintain price alignment. #### **Key Points:** * **When Positive:** Long traders pay short traders * **When Negative:** Short traders pay long traders * **Frequency:** Funding rates are typically exchanged at regular intervals (e.g., every 8 hours) and vary depending on market conditions. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://academy.hyblockcapital.com/indicators/sentiment/funding-rate.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.