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.
$\text{1h funding} = \text{1h} \space \text{TWAP} \space \frac{mark - \frac{index^p}{n} }{24}$
where:
• 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
• $\frac{mark}{index}$
is clamped between 0.95 and 1.05