JOJO.Exchange
  • JOJO EXCHANGE
    • ๐Ÿ”Overview
    • ๐Ÿš€Roadmap
    • ๐Ÿ“ฃAnnouncement
      • ๐Ÿ› ๏ธJOJO Exchange Upgrade to v2
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      • ๐ŸคTransforming DeFi With Chainlink and Lido
      • ๐Ÿช‚JOJO's Airdrop Season 2!
      • ๐ŸŽฐIntroducing Our New Mini-Game: Slot Machine!
      • ๐Ÿช‚Airdrop Season 1 claiming portal is ON!
      • ๐Ÿค–JOJO is Integrating Chainlink Data Streams to Power Its Silicon-Based AI Exchange
      • ๐Ÿ’กUpgrades to Chainlink Data Streams
      • ๐Ÿช‚JOJO's Airdrop Season 1!
      • ๐ŸญYou can now claim the reward for the 7-Day check-in Challenge!
      • โ—Notification of Environment Removal
      • ๐Ÿช‚JOJO's Airdrop Season 0!
      • ๐Ÿช™New listing: WIF/USDC, ENA/USDC, CKB/USDC, BOME/USDC, W/USDC, ETHFI/USDC, ONDO/USDC, and DOGE/USDC
      • ๐Ÿ”–Fee Discount Notice
  • v2 product guides
    • ๐ŸงTutorials
      • How to Connect Wallet & login?
      • ๐Ÿ’ฐDeposit & Withdraw
      • ๐Ÿ“ˆHow to trade Perpetual?
      • ๐Ÿ“ˆHow to Close a Position?
      • ๐Ÿ“ˆWhat is a Limit Order, and how to place it?
      • ๐Ÿ“ˆHow to Place a TP/SL Order ?
      • ๐Ÿ•น๏ธHow to trade 1000X ?
    • ๐ŸคทFAQs
      • โ”How much leverage will be available on JOJO?
      • โ”Is there a deposit fee or withdraw fee on JOJO๏ผŸ
      • โ”What Happens When a Market Is Delisted
      • ๐Ÿ“–How to Set Email
      • ๐Ÿ“–What is PnL and How to Calculate It?
      • How to bridge assets to Base
      • ๐Ÿ“–How to Swap USDC ?
  • ๐Ÿ’ตFees
  • โš–๏ธFunding Rate
  • ๐Ÿ’ธLiquidation
  • ๐Ÿ”‘API Keys
  • v1 Product guides
    • ๐ŸงTutorials
      • How to Connect Wallet & login?
      • ๐Ÿ’ฐDeposit ,Transfer & Withdraw
      • ๐Ÿ“ˆHow to trade Perpetual?
      • ๐Ÿ“ˆHow to Close a Position?
      • ๐Ÿ“ˆWhat is a Limit Order, and how to place it?
      • ๐Ÿ“ˆHow to Place a TP/SL Order ?
      • ๐Ÿ‘คHow to use Sub Account?
      • ๐Ÿ“ˆOne-click Trade
      • ๐Ÿ•น๏ธHow to trade 1000X ?
      • ๐Ÿ’ฐHow to get JOJO airdrops?
      • ๐Ÿ’ฐHow to stake JOJO and get veJOJO?
    • ๐ŸคทFAQs
      • โ”Will there be more trading pairs in the future?
      • โ”What collateral does JOJO accept?
      • โ”How much leverage will be available on JOJO?
      • โ”What is One-click Trade and How does It Work?
      • โ”Is there a deposit fee or withdraw fee on JOJO๏ผŸ
      • โ”Why Trading on JOJO is Safe?
      • โ”Why do I keep receiving risk warning emails from JOJO?
      • โ”What Happens When a Market Is Delisted
      • ๐Ÿ“–How to Set Email Notifications
      • ๐Ÿ“–What is PnL and How to Calculate It?
      • How to bridge assets to Base
      • ๐Ÿ“–How to Swap USDC ?
    • ๐Ÿค–Ai Revolution
    • ๐Ÿ“–Glossory
    • โœจTrading Pairs
    • ๐Ÿ’ตFees
    • ๐Ÿค‘Prices
    • โš–๏ธFunding Rate
    • ๐Ÿ’ธLiquidation
    • ๐Ÿค–Grid Bot
    • ๐Ÿคฉ1000X Trading
    • ๐Ÿ“ชSub Account
    • ๐Ÿง‘Referral Program
    • ๐Ÿ”ฐMulti-collateral system
      • Leverage your earning with mUSDC!
    • ๐ŸงฒFlexible Earn
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  • Smart Contract
    • ๐ŸŽฏContract Addresses
    • ๐Ÿ•ต๏ธBug Bounty & Audit
  • JOJO TOKEN
    • ๐Ÿ“ŠAllocation
    • ๐Ÿ”’Token Economy
  • Arbitrum Alpha Test
    • ๐ŸคSunset Plan
    • ๐ŸŽฏContract Addresses
    • โš—๏ธSTIP
    • ๐ŸŽ™๏ธAnnouncement
      • ๐Ÿช™JOJO has listed WLD/USDC, AGIX/USDC, AR/USDC, STRK/USDC and 13 new trading pairs!
      • ๐ŸงฐNotice of Legacy Network Decommissioning
      • ๐ŸงฐSmart Contract Upgrade Announcement
      • ๐Ÿ”งMaintenance Notice
      • ๐Ÿ”ฎBIG UPDATE of JOJO's Bizarre Adventure: all points earned x 100!
      • ๐Ÿช™JOJO has listed MEME/USDC!
      • ๐Ÿ”ฎJOJO's Bizarre Adventure Event is now alive!
      • ๐Ÿ’ฐNew collaterals: ARB!
      • ๐Ÿ’ฐNew collaterals: wstETH and GMX!
      • ๐Ÿช™JOJO has been listed ARB/USDC, SOL/USDC, and LINK/USDC!
      • ๐Ÿ”–Notification of Environment Removal
  • LEGAL
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On this page
  • What is Funding Rate?
  • How Does Funding Rate Impact Traders?
  • How Does It Work?
  • How are Funding Rates calculated on JOJO?
  • Premium calculation
  • Piecewise linear funding rate function
  • โ€‹Interest Rate
  • โ€‹Final Funding Rate
  • โ€‹Funding Period
  • โ€‹Accrued Funding
  • โ€‹Funding settlement

Funding Rate

Introducing JOJO Funding Rate

PreviousFeesNextLiquidation

Last updated 1 month ago

What is Funding Rate?

Funding rates are periodic payments made to either long or short traders, calculated based on the difference between the perpetual contract prices and spot prices. It is designed to prevent long-term discrepancies between perpetual contract markets and spot prices. It is recalculated several times a day โ€“ JOJO does this every 8 hours.

JOJO provides a clear display of funding rate and a countdown to the next funding period for the convenience of its users.

How Does Funding Rate Impact Traders?

The impact of funding rates on traders can be significant as funding calculations take into account the amount of leverage used. If a trader uses high leverage and pays for funding, they may suffer losses and end up getting liquidated even in low-volatility markets. Conversely, if a trader collects funding, it can be profitable, particularly in range-bound markets. Therefore, traders can create trading strategies to benefit from funding rates and make profits even in low-volatility markets. Essentially, funding rates are intended to incentivize traders to take positions that maintain perpetual contract prices in line with spot markets.

How Does It Work?

This model of paying a penalty to the side that deviates from the target price to the side that maintains the target price is the funding fee system of perpetual. Through such reward and punishment measures, the designer of perpetual urges the party whose price deviates in the contract market to adjust, and finally makes the contract price converge with the spot price. In the event of a positive funding rate, it is typical for the perpetual contract price to exceed the mark price. Consequently, traders with long positions must pay for short positions. Conversely, a negative funding rate dictates that short positions must compensate long positions. It is important to note that funding rates are exchanged between peers, and as such, JOJO takes no fees from funding rates as they happen directly between users.

How are Funding Rates calculated on JOJO?

Premium calculation

The Funding Rate is determined mainly by the Premium, which measures the deviation between the Futures price and the Index Price (ie the Basis). In order to avoid manipulation, JOJO uses Impact Bid and Ask prices, rather than the highest bid and lowest ask only.

  • The Impact Bid Price represents the average fill price to execute a sell order with the size of the Impact Margin Notional.

  • The Impact Ask Price represents the average fill price to execute a buy order with the size of the Impact Margin Notional.

  • The Impact Margin Notional is the notional available to trade with 1,000 USDC of collateral at the maximum leverage of the specific market. For example, for NEAR-USDC, the maximum leverage is 10x, so Impact Margin Notional is 10,000 USDC.

Every 15 seconds, JOJO computes the Premium index according to the following formula:

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Premium = [Max(0, Impact Bid Price - I) - Max(0, I - Impact Ask Price)] / I

I = Index Price

Piecewise linear funding rate function

For each funding period of 8 hours, JOJO calculates the Premium every 15 seconds. The number of Premium points is therefore N = 1,920 points. An Average Premium is then computed:

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Average Premium = (Premium_1 + Premium_2 + ... + Premium_N) / N

Once the Average Premium for the funding period has been computed, a funding piecewise linear function with three regions is applied to the Average Premium

The Funding Function is defined as follows to allow for faster convergence in case the prices deviate significantly:

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Funding Function(x) =
  x , if |x| < 0.5%
  0.5%  * sign(x) + (x - 0.5% * sign(x)) * 2, if 0.5% < |x| < 1.5%
  [0.5% + (1.5% - 0.5%) * 2] * sign(x) + (x - 1.5% * sign(x)) * 4, if |x| > 1.5%

NB: x refers here to the Average Premium
Premium
Range
Slope

Low

|x| < 0.5%

1

Medium

0.5% < |x| < 1.5%

2

Large

1.5% < |x|

4

To this funding function, we add the second component of the funding rate which is the Interest Rate. By definition, it is equal to:

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Interest Rate = (USDC Interest - Underlying Base Asset interest) / Funding Interval

The Interest Rate is fixed to be 0.01% for all Perpetual Markets (assuming USDC interest of 0.06%, Asset interest rate equal to 0.03%). JOJO reserves the right to adjust the Interest Rate depending on market conditions.

The final Funding Rate is then a combination of the Average Premium and the Interest Rate.

Copy

Funding Rate = clamp[Funding Function(Average Premium) + clamp(Interest Rate - Funding Function(Average Premium) , Cap IR, Floor IR), Cap Funding, Floor Funding]

The funding rate is also capped and floored respectively by a Cap Funding and a Floor Funding. The specific values depend on each perpetual market.

Perp Market
Cap Funding
Floor Funding
Cap IR
Floor IR

BTC

0.3%

-0.3%

0.03%

-0.03%

ETH

0.375%

-0.375%

0.03%

-0.03%

ARB

0.45%

-0.45%

0.01%

-0.01%

WOO

2.00%

-2.00%

0.01%

-0.01%

LINK

0.375%

-0.375%

0.01%

-0.01%

OP

0.45%

-0.45%

0.01%

-0.01%

SOL

0.4875%

-0.4875%

0.01%

-0.01%

SUI

0.75%

-0.75%

0.01%

-0.01%

TIA

4.00%

-4.00%

0.02%

-0.02%

INJ

3.00%

-3.00%

0.01%

-0.01%

AVAX

0.3750%

-0.375%

0.01%

-0.01%

JUP

4.00%

-4.00%

0.02%

-0.02%

ORDI

4.00%

-4.00%

0.02%

-0.02%

APT

0.3750%

-0.375%

0.01%

-0.01%

BLUR

2.00%

-2.00%

0.01%

-0.01%

WLD

0.75%

-0.75%

0.01%

-0.01%

STRK

4.00%

-4.00%

0.02%

-0.02%

SEI

2.00%

-2.00%

0.01%

-0.01%

DYM

4.00%

-4.00%

0.02%

-0.02%

ETHFI

4.00%

-4.00%

0.02%

-0.02%

ENA

4.00%

-4.00%

0.02%

-0.02%

W

4.00%

-4.00%

0.02%

-0.02%

WIF

4.00%

-4.00%

0.02%

-0.02%

ZEUS

1.50%

-1.50%

0.01%

-0.01%

OMNI

4.00%

-4.00%

0.02%

-0.02%

MERL

1.50%

-1.50%

0.01%

-0.01%

ONDO

4.00%

-4.00%

0.02%

-0.02%

AR

2.00%

-2.00%

0.01%

-0.01%

FIL

0.45%

-0.45%

0.01%

-0.01%

MEW

4.00%

-4.00%

0.02%

-0.02%

BOME

4.00%

-4.00%

0.02%

-0.02%

1000PEPE

2.00%

-2.00%

0.01%

-0.01%

1000BONK

4.00%

-4.00%

0.02%

-0.02%

TON

4.00%

-4.00%

0.02%

-0.02%

1000FLOKI

3.00%

-3.00%

0.01%

-0.01%

STG

3.00%

-3.00%

0.01%

-0.01%

BRETT

2.00%

-2.00%

0.01%

-0.01%

IO

4.00%

-4.00%

0.02%

-0.02%

ZK

4.00%

-4.00%

0.02%

-0.02%

PONKE

1.50%

-1.50%

0.01%

-0.01%

ZRO

4.00%

-4.00%

0.02%

-0.02%

POPCAT

3.00%

-3.00%

0.01%

-0.01%

MKR

0.045%

-0.045%

0.02%

-0.02%

AAVE

1.125%

-1.125%

0.01%

-0.01%

CRV

3.00%

-3.00%

0.01%

-0.01%

LDO

0.45%

-0.45%

0.01%

-0.01%

TRX

0.4875%

-0.4875%

0.01%

-0.01%

ORDER

4.00%

-4.00%

0.02%

-0.02%

POL

0.45%

-0.45%

0.01%

-0.01%

TAO

4.00%

-4.00%

0.01%

-0.01%

EIGEN

4.00%

-4.00%

0.02%

-0.02%

MOODENG

4.00%

-4.00%

0.02%

-0.02%

1000SHIB

0.04875%

-0.04875%

0.01%

-0.01%

1000APU

4.00%

-4.00%

0.01%

-0.01%

GOAT

4.00%

-4.00%

0.02%

-0.02%

MOG

2.00%

-2.00%

0.01%

-0.01%

SPX

4.00%

-4.00%

0.02%

-0.02%

LINA

3.00%

-3.00%

0.01%

-0.01%

PNUT

4.00%

-4.00%

0.02%

-0.02%

ACT

4.00%

-4.00%

0.02%

-0.02%

NEIRO

4.00%

-4.00%

0.02%

-0.02%

CHILLGUY

4.00%

-4.00%

0.02%

-0.02%

CETUS

4.00%

-4.00%

0.02%

-0.02%

COW

4.00%

-4.00%

0.02%

-0.02%

PENDLE

3.00%

-3.00%

0.01%

-0.01%

HYPE

4.00%

-4.00%

0.02%

-0.02%

AIXBT

4.00%

-4.00%

0.02%

-0.02%

TURBO

4.00%

-4.00%

0.02%

-0.02%

PENGU

4.00%

-4.00%

0.02%

-0.02%

AI16Z

4.00%

-4.00%

0.02%

-0.02%

FARTCOIN

4.00%

-4.00%

0.02%

-0.02%

HSK

4.00%

-4.00%

0.02%

-0.02%

ZEN

4.00%

-4.00%

0.02%

-0.02%

BIO

4.00%

-4.00%

0.02%

-0.02%

RUNE

4.00%

-4.00%

0.02%

-0.02%

RAY

4.00%

-4.00%

0.02%

-0.02%

ADA

3.75%

-3.75%

0.01%

-0.01%

AVAA

4.00%

-4.00%

0.02%

-0.02%

S

0.45%

-0.45%

0.01%

-0.01%

TRUMP

4.00%

-4.00%

0.02%

-0.02%

MELANIA

4.00%

-4.00%

0.02%

-0.02%

MODE

4.00%

-4.00%

0.02%

-0.02%

ZEREBRO

4.00%

-4.00%

0.02%

-0.02%

ANIME

4.00%

-4.00%

0.02%

-0.02%

GRIFFAIN

4.00%

-4.00%

0.02%

-0.02%

VINE

4.00%

-4.00%

0.02%

-0.02%

FET

3.00%

-3.00%

0.01%

-0.01%

OM

4.00%

-4.00%

0.02%

-0.02%

PLUME

4.00%

-4.00%

0.02%

-0.02%

BERA

4.00%

-4.00%

0.02%

-0.02%

TST

4.00%

-4.00%

0.02%

-0.02%

ZEUS

4.00%

-4.00%

0.02%

-0.02%

UXLINK

4.00%

-4.00%

0.02%

-0.02%

TOSHI

4.00%

-4.00%

0.02%

-0.02%

LAYER

4.00%

-4.00%

0.02%

-0.02%

IP

4.00%

-4.00%

0.01%

-0.01%

SHELL

4.00%

-4.00%

0.01%

-0.01%

CAKE

4.00%

-4.00%

0.01%

-0.01%

PI

4.00%

-4.00%

0.02%

-0.02%

KAITO

4.00%

-4.00%

0.02%

-0.02%

LTC

0.375%

-0.375%

0.01%

-0.01%

HBAR

2.00%

-2.00%

0.01%

-0.01%

RED

4.00%

-4.00%

0.02%

-0.02%

ELX

4.00%

-4.00%

0.02%

-0.02%

BMT

4.00%

-4.00%

0.02%

-0.02%

The Funding Period for JOJO is dt = 8 hours. The Funding Rate is expressed on an 8-hour basis.

Every 8 hours, a position on a Perpetual Futures contract will accrue the following funding:

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Accrued Funding(dt) = Position Size * Mark Price * Funding Rate

The accrued funding of an accountโ€™s position is settled when a PNL settlement is being called on that account.

Interest Rate

Final Funding Rate

Funding Period

Accrued Funding

Funding settlement

โš–๏ธ
โ€‹
โ€‹
โ€‹
โ€‹
โ€‹
JOJO funding rate and countdown