The funding rate consists of two components:

• Interest Rate (I): Reflects the difference in interest rates between the quote and base currencies (e.g., BTC and USDT).
• Premium Index (P): Measures the deviation of the perpetual swap price from the mark price.

The funding rate formula is:

$\text{Funding Rate} = \text{Avg(P)} + \text{clamp}[ \text{Avg(I)} – \text{Avg(P)}, 0.05\%, -0.05\% ]$

Funding Rate=Avg(P)+clamp[Avg(I)−Avg(P),0.05%,−0.05%]