What is the Funding Rate Payment?
A mechanism to keep the Perpetual Futures price in line with the spot market through periodic credits/debits between long and short positions.Mark Price
Derived from publicly available orderbook data, such as a VWAP over a specific period (e.g., 3:45–4:00 PM London Time). The AX calculation methodology is available in Section 3.2. Mark Price Calculation in the Pricing Policy (https://architect.co/legal/ax-pricing-policy).Underlying Price
Sourced from independent benchmark providers (e.g., LSEG, S&P, ICE, NASDAQ) using a transparent calculation method.Frequency
Funding occurs daily (or as scheduled), excluding holidays and exchange closures.Processing Time
At each product’s published settlement time, funding payments are applied to all open positions. Each product’s settlement time is published on the Trade page’s Product Specs tab, as well as on the published Product Specifications List (https://architect.co/legal/ax-product-specification-list)Tracking Mechanism
- If Mark > Underlying, longs pay shorts.
- If Mark < Underlying, shorts pay longs.
- The amount is proportional to the price difference, incentivizing price convergence.
Example
EUR/USD Perpetual Future:- Benchmark: 1.2000 USD/EUR (WMR rate)
- Mark Price: 1.2015 USD/EUR
- Difference: 0.0015 USD
This daily mechanism aligns the contract price with the underlying.