What it means

Funding rates can be positive or negative depending on market conditions.

Why it matters

Funding affects the cost of holding leveraged positions over time.

Common mistake

Do not treat Funding Rate in crypto as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.

User action

Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.

Related pages

Continue with Perpetual contract or return to the crypto glossary.

How to use this term

Use Funding Rate as a practical checkpoint when comparing exchanges, wallets, cards or on-chain tools.

What to check

Check how the term appears in fees, limits, account rules, wallet flows and risk notes before making a platform decision.