X、What is The Mechanism of Funding Rate？

Hotbit’s Perpetual Contracts adopts a funding mechanism to keep the Contracts’ market price in line with the Spot Index Price.
 
Funding fee is exchanged every 8 hours, after the daily settlement at 00:00, 08:00 and 16:00 ( UTC). If you close your position prior to the funding exchange then you will not pay or receive funding.

1. Funding Rate

Funding Rate = Clamp(MA(((Best Bid + Best Offer)/2-Spot Index Price)/Spot Index Price-Interest),a,b)
*Interest is currently zero

The values of a and b are listed as follows:

Token          a           b

Other Tokens   -0.3%       0.3%

【The contents of all data and index above may be adjusted from time to time according to various market situations, please note that all possible upcoming adjustments mentioned above will not be announced anymore。】

2. Actual Funding Fee
 
Cross margin mode: during funding, the fee will be charged directly from the RPL. However, the maximum funding fee is capped when the margin ratio = maintenance margin ratio+ Forced-Liquidation Fee Rate.
 
Fixed margin mode: during funding, the fee will first be charged from the RPL, followed by the fixed margin of the position. However, the maximum funding fee is capped when the margin ratio = maintenance margin ratio+ Forced-Liquidation Fee Rate.
 
So, the actual funding fee to be received by a user depends on the amount taken by the system from the counter party