Conversation

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.

Replying to

and

any guesses/theory as to why?

Replying to

and

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.

Replying to

and

They bias it towards -1bp/cycle

Replying to

and

Wait what? *-*1bp?

Replying to

and

whoops sorry mean +1bp--1 bp to shorts

Replying to

and

I guess that's why it would seem like .01% is the most common funding rate. Did you see that in their algorithm? If so can you link me to it? Or is that just what you've put together?