[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  MartyParty [@martypartymusic](/creator/twitter/martypartymusic) on x 222.1K followers Created: 2025-07-22 22:50:18 UTC Crypto Education: What is the Funding Rate? There are X primary markets for crypto assets. The Spot market (asset "index" price), and perpetual futures market which is a casino price where gamblers are betting long/short meaning price go up/down implemented by buying/selling casino "contracts" called "swaps". A key core measure of market flow in perpetual futures markets, is the funding rate mechanism used to ensure the contract's price does not deviate from the underlying index price. If the perpetual swap price is drifting above the index, the funding rate will be positive, to incentivise short positions over long positions. Equally if the perpetual swap price is drifting below the index, the funding rate will be negative, to incentivise long positions over short positions. This is a primary tool in the Crypto Exchange toolbox to manipulate price much like the Fed manipulates the economy with the Fed Fund Rate. XXXXXX engagements  **Related Topics** [futures](/topic/futures) [Post Link](https://x.com/martypartymusic/status/1947791340802347529)
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MartyParty @martypartymusic on x 222.1K followers
Created: 2025-07-22 22:50:18 UTC
Crypto Education: What is the Funding Rate?
There are X primary markets for crypto assets. The Spot market (asset "index" price), and perpetual futures market which is a casino price where gamblers are betting long/short meaning price go up/down implemented by buying/selling casino "contracts" called "swaps".
A key core measure of market flow in perpetual futures markets, is the funding rate mechanism used to ensure the contract's price does not deviate from the underlying index price. If the perpetual swap price is drifting above the index, the funding rate will be positive, to incentivise short positions over long positions. Equally if the perpetual swap price is drifting below the index, the funding rate will be negative, to incentivise long positions over short positions.
This is a primary tool in the Crypto Exchange toolbox to manipulate price much like the Fed manipulates the economy with the Fed Fund Rate.
XXXXXX engagements
Related Topics futures