> For the complete documentation index, see [llms.txt](https://fx100.gitbook.io/fx100-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fx100.gitbook.io/fx100-docs/how-the-system-works/funding.md).

# Funding

FX100 funding accrues continuously, per second. There is no hourly charge event and nothing to claim — it settles into your position's margin as described below. It is also materially lower than conventional perps.

The structure is not the one most traders expect, so it is worth reading properly.

## It is not a long-to-short transfer

On most venues, funding flows directly from one side to the other. On FX100 the net flows to the **liquidity vault**, because the vault is the counterparty to every trade and carries the platform's directional and volatility risk.

```
skew    = 1h EMA( (longOI − shortOI) / totalOI )

f_long  = clamp( floorFactor + baseFactor · skew , min, max )
f_short = clamp(              − baseFactor · skew , min, max )
```

A positive rate means that side **pays**. A negative rate means that side **receives**.

## When the market is balanced

At `skew = 0`:

* `f_long = floorFactor`, a small positive number. **Longs pay a floor fee to the vault.**
* `f_short = 0`. **Shorts pay nothing.**

The floor exists on the long side only. It covers the baseline cost of the protection the system provides, and it is why funding on FX100 is never exactly zero even in a perfectly balanced market.

## When the market is skewed

The crowded side pays more. The lighter side pays less, and can flip negative — meaning it **receives** funding, credited automatically into margin.

{% hint style="info" %}
Taking the unpopular side of a crowded market is rewarded twice: a better fill through the [skew component of the spread](/fx100-docs/trading/pricing-and-execution.md), and potentially positive funding.
{% endhint %}

## No borrowing fee

FX100 charges no borrowing fee at all. Funding is the only ongoing cost of holding a position.

Combined with low funding, this is what makes holding a leveraged position over days rather than hours viable — there is no continuously accruing charge grinding down collateral on a long hold.

## Accrual and settlement

Funding accrues continuously, per second, as a **pending** amount. It settles into your position's margin when a state-changing transaction occurs on the platform — any open, close, or adjustment, not necessarily one touching your own position. Paying deducts from margin; receiving adds to it. There is no separate balance and no claim step.

Between settlements, your accrued funding sits as pending funding — and it already counts against you. Pending funding is subtracted from your net collateral and is reflected in your liquidation price before it is ever moved into the margin balance. Settlement makes it final; it does not decide when the cost begins to apply.

{% hint style="info" %}
You cannot avoid funding by leaving a position untouched. It is priced into your net collateral and liquidation price from the moment it accrues — settlement only realizes what has already been counted.
{% endhint %}

Because it moves net collateral, accrued funding also moves your displayed leverage and your liquidation price. On a small position held a long time, this is the usual explanation for leverage drifting upward. See [leverage and margin](/fx100-docs/trading/leverage-and-margin.md).

## Sign convention

In the position panel, the funding column shows **negative when you are paying** and **positive when you are receiving**.