WOO X will check and conduct the settlement for the funding fee and negative USDT amount every hour. Please note that any payment or settlement will be paid out in USDT regardless of which type of collateral you use. See the details in different scenarios below:
WOO X will settle the funding fee hourly. Funding payments will be credited or debited at the end of each hour and updated in your USDT balance.
- Traders will only pay or receive a funding fee if they hold a position on the hour.
- If positions are entirely closed before the funding settlement, then traders will not pay or receive funding fees.
- The funding fee charged will be deducted from the trader's USDT available balance. If the trader has no USDT available balance, you will get a negative amount of USDT after the payment of the funding fee, and the risk of liquidation will increase.
Funding is calculated algorithmically based on the perpetual index and market prices. Payments between all longs and shorts sides in the Perpetual Futures market will be determined by the market. If the rate is positive, longs pay shorts; If negative, shorts pay longs.
- The funding rate to be paid/received is determined by the formula: Funding rate=clamp[ 60_min_TWAP_(P3-index_price)/index_price)，0.003，-0.003] /24
- Funding Fee = Notional * funding_rate
Note: 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.
Negative amounts greater than 20,000 USDT:
If your negative USDT balance is larger than $20,000 in spot & futures mode, WOO X will conduct a settlement to market by converting your non-USDT collaterals 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.x
Convert rules for negative USDT amount settlement - WOO X will convert the stable coins first (such as USDT, USDC, BUSD, 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 this group order. (It depends on the liquidity of the market)
|1||ADA, ALICE, AVAX, BNB, BTC, BUSD, CAKE, DAI, DOT, ETH, FIL, GALA, ICP, LINK, LTC, LUNA, MATIC, SHIB, SOL, USDC
|2||AAVE, ATOM, AXS, BCH, BTTC, CRV, DOGE, ENS, EOS, ETC, FTM, FTT, MANA, NEAR, OMG, RUNE, SAND, TRX, UNI, XLM, XTZ, ZEC|
|3||ALGO, BAL, BAND, BSV, CHZ, COMP, CRO, DASH, DYDX, ENJ, GRT, KSM, LRC, MKR, NEO, ONE, SNX, SRM, SUSHI, UMA, VET, YFI, YGG|
|4||1INCH, ASD, AURORA, BADGER, BIT, BNT, BOBA, CELR, DODO, HT, LEO, LOOKS, OKB, ONT, PERP, PSP, QRDO, RAY, REN, ROOK, SPELL, WOO, ZRX|