▶ Funding rate and Settlement

▶ Funding Fee:

WOO X will settle funding payments for your perpetual positions based on the funding interval of the instruments. By default, the funding interval is 8 hours, but WOO X reserves the right to update funding intervals during extreme market conditions. Funding payments will be settled in USDT.

The funding fee will be exchanged directly between traders who hold long positions and those who hold short positions at the time funding is charged. Using the 8-hour funding interval as an example, the funding fee will be processed only for traders who hold positions at 12 AM UTC, 8 AM UTC or 4 PM UTC. When the funding rate is positive, traders who hold long positions will pay traders who hold short positions. When the funding rate is negative, traders who hold short positions will pay traders who hold long positions.

Funding fee = Funding rate * Position notional = Funding rate * Holding * Mark price

For cross margin positions, the funding fee is charged directly from your cross collateral.
For isolated margin positions, the funding fee will first be collected from the cross margin available USDT. If the cross margin balances are insufficient, cancel all the pending orders that will open new isolated margin positions for the symbol. If the cross margin available USDT balance is still inadequate to cover the funding fees, it will get deducted from the margins of the isolated margin position.

▶ Funding Rate: 

Funding rate = clamp[ average premium index, funding cap, funding floor]

Where:

• premium index = [(impact bid price + impact ask price) / 2 - index price] / index price, calculated every 5 seconds
• impact bid/ask prices are calculated based on the average fill price to execute an impact margin notional on bid/ask side
  • Given an orderbook snapshot S, bid 1 price of p_1 and bid 1 quantity of q_1, bid 2 price of p_2 and bid 2 quantity of q_2, and so on
  • Denote j such that the following conditions are satisfied:
    • summation of (p_i * q_i ) over 1 to j <= impact margin notional and
    • summation of (p_i * q_i ) over 1 to j+1 > impact margin notional
  • Impact bid price = impact margin notional / [ ( impact margin notional - summation of (p_i * q_i) over 1 to j ) / p_{j+1} + ( summation of q_i over 1 to j ) ]
  • If such j cannot be found,
    • If p_1 * q_1 > impact margin notional, then impact bid price is set to p_1
    • If summation of (p_i * q_i ) over all available i’s < impact margin notional, then impact bid price will not be calculated and so premium index for this sample will be skipped calculating
  • impact ask price is calculated in a similar fashion
• funding cap / funding floor are all calibrated for each perpetual instrument and may be subject to change without prior notice

※Note:

1. You can find the current and next funding rates from the account or trading page. In addition, WOO X also provides the data panel of funding rates from other major exchanges.
2. The information above is provided for general reference only and is subject to change by WOO X's sole discretion.

Please refer to here for the latest funding rates.

▶ Settlement:

WOO X will settle your PERP unreal. PnL every 10 minutes if the abs(unreal. PnL) >= 10 USDT.

For example: 

If a BTC-PERP position was opened with the quantity of 1 and the price of 40,000 USDT:

If the position is closed at 10:46 with the price 40,500 USDT, the total PnL will be the sum of the USDT settlement which is 500 USDT.

▶ Auto-Converting Collateral:

You can change your setting of auto-converting collateral in the Margin & Future => choose “Trade Spot & Futures” trading mode => Funding & Collateral Info => Collateral

Desktop:

Mobile: 

Please note that this setting can only be changed once a day.

When the setting is disabled:
You will be charged interest for a negative USDT balance.
Please check the details of interest at ▶ What are the interest rates for WOO X margin trading?

When the setting is enabled:

Your negative PERP positions will not charge you interest.
However, if your PERP positions have negative amount larger than $20,000 USDT, WOO X will conduct a conversion to market by converting your non-USDT collateral to USDT to pay off your negative USDT balance with IOC orders. WOO X will iterate the above process and convert the collateral hourly. After the conversion, you can see the details from the order history. (Type = Settle-to-Market)

Convert rules for negative USDT amount settlement - WOO X will convert the tokens according to the negative PERP positions first. If there are no or insufficent tokens of the PERP positions available, stable coins will be used (such as USDT, USDC, and DAI). If there is more than one stable coin, WOO X will choose the larger balance. If there are no stable coins available for converting, WOO X will choose the assets by tokens with higher liquidity.

※Note: 0.1% trading fee will be charged for the settlement.