# 🍧Funding and Pricing

**funding** **mark**

`ImpactMid = (avgImpactBid(ImpactNotional) + avgImpactAsk(ImpactNotional)) / 2`

computed every

`TickInterval`

set to

`5`

seconds

`avgImpactBid`

,`avgImpactAsk`

are average cost per contract when buying/selling`ImpactNotional`

worth of contracts`ImpactNotional`

is in the base asset (usually USDB)for large pairs set to

`$10,000`

to`$100,000`

for small pairs set to

`$1,000`

to`$10,000`

`FundingMark = ema(ImpactMids, Weight)`

computed every

`TickInterval`

`ema`

is exponential moving average`Weight`

is the EMA weightingset to

`2 / 7`

`ImpactMids`

is list of previous`ImpactMid`

every`TickInterval`

**funding rate**

`Premium = (twap(FundingMarks) - twap(Indexs)) / Index`

computed every

`SettleInterval`

set to

`1`

hour

`Index`

is oracle pricestork oracle

for prelaunch perpetuals, it is a computed value

`twap`

is time weighted average price`FundingMarks`

is list of previous`FundingMark`

over the last`SettleInterval`

`Indexs`

is list of previous`Index`

over the last`SettleInterval`

`Premium`

is considered as an amount per`FundingInterval`

set to

`8`

hours

`FundingRate = BaseRate + clamp(Premium / (FundingInterval / SettleInterval), -Clamp, Clamp)`

computed every

`SettleInterval`

`BaseRate`

is underlying interest rate of perpetual future per`SettleInterval`

set to

`0`

`clamp(a, y, z)`

clamps`a`

between`y`

and`z`

defined as

`a`

if`y < a < z`

`y`

if`a ≤ y`

`z`

if`z ≤ a`

`Clamp`

is maximum magnitude funding can take (before underlying interest) per`SettleInterval`

set to

`0.005 = 0.5%`

`FundingRate`

is considered as an amount per`SettleInterval`

**funding amount**

`FundingAmount = FundingRate * Index`

computed every

`SettleInterval`

the

`FundingAmount`

is the notional amount longs pay shorts per contract per`SettleInterval`

Note: Funding settlement occurs every `SettleInterval`

. No settlement occurs at open/close of positions.

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