9. Funding Rate (Perpetual Contracts / PERPS) - Kraken Futures

Key points: - The funding rate is not a fee charged by Kraken Futures. It is a small amount paid by one side of the contract to the other, to encourage the futures contract price in line with the spot Index Price. - Sometimes you will pay a funding rate, and sometimes you will receive a funding rate payment, based on market demand. - The funding rate changes every four hours, but in general during bull markets, the funding rate will be positive, which means longs will pay shorts. And during bear markets the funding rate will tend to be negative, which means shorts will pay longs.