Funding rate

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Funding rate

per settlement · below 0 %

• Funding
• low
• high

This is how the node looks on the board. It has no inputs; on the right its values go to other nodes.

Like a fee for crowding in: the funding rate shows which side of the futures market is too crowded and pays the other side for it. Very high values mean everyone wants to be long.

Who pays whom how much in futures. Perpetual futures have no expiry. To keep their price close to the coin’s price, one side pays the other at every settlement, usually every 8 hours. When the rate is positive, longs pay: many bet on rising prices on margin, and above “high” the market counts as overheated. When it is negative, shorts pay: many bet on falling prices, which can set off a short squeeze upwards. The node takes the coin of the chain’s first candle and shows the last settlement at every candle. Example: “funding above 0.05 %” with AND and “RSI above 70” reports an overheated rally.

What it looks like

• Price (close of each candle)
• Funding
• below 0 % and above 0.008 %

Top: the BTC/USDT price; bottom: the funding rate of the perpetual contract on BTC, the last settlement at every candle. Here with “Low below 0 %” and “High above 0.008 %”: the outputs are true while the line is inside the zone, that is until the next settlement. 0.01 % per settlement is usual; in these three weeks the rate mostly stayed below it.

Setting it in the chart

In the properties, a chart shows the last 150 candles with the zone between Low and High. Drag a limit or type the numbers; a limit that comes from another node can’t be dragged. The top line shows how many candles lie inside the range and how often the condition would be met.

More under Chart above the price.

Settings

The settings appear on the right under “Properties” once you click the node on the board. Below each field you find the same explanation as here.

Low below

Default: 0 % · from -5 to 5 %

Below this line the “low” output is true. With 0 % it reports as soon as shorts pay; −0.01 % is already clearly negative.

High above

Default: 0.05 % · from -5 to 5 %

Above this line the “high” output is true. 0.01 % per settlement is usual; from about 0.05 % the market counts as overheated, for small coins often only later.

Example

A simple example with this node.

How to connect the nodes:

1. Funding rate (low) → Telegram (Trigger)

On the board it reads: per settlement · below 0 %

Chain as JSON

To try it, copy it and paste it in the editor under “Import”. Importing creates a new chain.

funding.json

{
  "name": "Example: Funding rate",
  "version": 1,
  "nodes": [
    { "id": "x1", "type": "core.funding", "position": { "x": 40, "y": 40 }, "settings": {} },
    { "id": "t1", "type": "core.telegram", "position": { "x": 260, "y": 40 }, "settings": {} }
  ],
  "edges": [
    { "from": "x1.low", "to": "t1.in" }
  ]
}

Inputs and outputs

Only matching types connect: number series to number series (round pin), signal to signal (square), message to message (diamond).

Direction	Pin	Type	Note
Input	–	–	No inputs: the data comes straight from the source.
Output	Funding	Number series	in percent
Output	low	Signal (true/false)	–
Output	high	Signal (true/false)	–

Good to know

• In messages the value is called “Funding”.
• Search also finds it under: funding, funding rate, perpetual, perp, futures, derivatives, leverage, long, short, squeeze, overheated.

Technical details

Funding rate of the USDT perpetual on the coin of the chain’s first candle (BTC/USDT, BTC/EUR … → BTC), from one of the largest futures markets, in percent per settlement. At a candle the last settlement at least 5 minutes before its close applies; if it is older than 24 hours or there is no contract, the value stays empty. Contracts on 1,000 coins (such as PEPE) count like one.

• Type in the chain: core.funding · Version 1.0.0 · Category key src
• Settings in the chain: low (Low below), high (High above)
• Pins in the chain: Output rate, low, high
• Source: Funding rate from the futures market, loaded by the engine
• Reference tests in the manifest: 1 (with fixed price data: 500 candles of 1h)
• How a node is built