▶ Funding Rate and settlement

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:

Funding Fee:

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)，0.6，-0.6] /24
• Funding Fee = Notional * funding_rate

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. In the event of extreme market conditions, the highest or lowest funding rate cap used in the funding rate calculation will be adjusted to account for the market.
The information above is provided for general reference only and is subject to change by WOO X's sole discretion.

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

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

When the setting is disabled:
You will be charged interest once every hour for 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, 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)

※Note: 1% trading fee will be charged for the settlement.