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I have to say, BitMEX funding rates always perplex me. The BTC perps have been ~8bps cheap for a while, but are going to pay 1bp to shorts in 8 hours.

11:34 AM · Nov 22, 2019Twitter Web App

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Please explain

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I think they are manipulating it since now everyone uses them as leading indicator for shorts/long ratio.

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That's because of the 0.05% clamping. Also the average uses snapshot made every 1 minutes so even if the spread is 8bps below the index for 59 sec, if it goes above for even 1 sec during the snapshot, it messes up the average.

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Additionaly, the snapshots are not capped : so a couple of super high value might mess up the average.

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I got suspension notices on all 8 of my accounts 2 days ago. My longs at 9x, I couldn't save by decreasing leverage or increwsing funds. Fkn funny bastards. They hedged this drop. Insurance must be looking light.

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Clamp

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any guesses/theory as to why?

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Ive seen funding move much faster from negative to positive than positive to negative. It seems almost as if their funding algorithm places more weight on time in contango than backwardation since longs are constantly paying shorts.