The funding fee is the interest-rate spread between borrowing and lending in a margin loan transaction.
1. When you trade on margin, each position represents a debit and a credit. For example, if you are long BTC/USDT, you would be borrowing USDT (to pay interest on USDT) and lending BTC (to get BTC interest). Every 8 hours, you either pay (or receive) the interest-rate spread between USDT and BTC.
The formula for the funding cost is: Funding (long BTC/USDT) = Market to USD (total BTC lent * BTC 8-hour deposit rate) - Market to USD (Total USDT borrowed * USDT 8-hour lending rate).
2. In Amber, the funding fee is exchanged directly between buyers and sellers every 8 hours at 00:00; 08:00 and 16:00 (UTC+8), settled in USD.
3. Depending on your position (long or short) at the time of a funding period, you will pay or receive the funding fee.
4. If you close all your positions prior to these funding periods (you have no open positions), you will not pay or receive a funding fee.
* You can check the funding fee and funding rate of each position in [Positions].