CYCLESCOPE · LEVERAGE
Perpetual Funding
The periodic payment between perpetual-futures longs and shorts. Its sign shows positioning bias; persistent extremes reveal crowding.
Perpetual-futures positioning bias
Funding keeps the perpetual contract close to spot. A positive rate means longs pay shorts; a negative rate means shorts pay longs.
Rate for the provider interval
Funding payment = position size × funding rateThe interval and venue mix depend on the provider, so comparisons should use the same series.
Risk rises at both extremes
- < 0%Short bias; a persistent extreme increases short-squeeze risk.
- ≈ 0%Positioning is closer to balance.
- > 0%Long bias; high persistent readings indicate crowded leverage.
Watch persistence and OI
One spike is weaker than sustained high funding alongside rising open interest. An adverse price move can trigger deleveraging.
Intervals and venues differ
Funding alone is not a liquidation signal. Open interest, basis, price direction and persistence provide necessary context.
This material is for market research and is not investment advice.