Powers funding
Funding is collected hourly based on the ratio between longs and shorts, with a daily funding period. It is calculated using a difference between an hourly TWAP of mark price divided by a normalization factor n and an hourly TWAP of the index price divided by n raised to the power P of the market, over 24 hours.
1h funding=1h TWAP markindexpn24\text{1h funding} = \text{1h} \space \text{TWAP} \space \frac{mark - \frac{index^p}{n} }{24}
  • Index price is the price of the underlying asset
  • p is the power of the market
  • n is a normalization factor that is a multiple of 10, and used to make numbers more readable
  • markindex\frac{mark}{index}
    is clamped between 0.95 and 1.05
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