Question 1

What is a funding rate term structure?

Accepted Answer

Funding term structure is a side-by-side view of current 8-hour funding rates across multiple perpetual pairs, ranked against each pair's own 2-year history. MarketTrace shows it for BTC, ETH, SOL, BNB, XRP and DOGE so you can compare which perp is cheap or expensive to short or long right now relative to its own past.

Question 2

What does a funding rate percentile mean?

Accepted Answer

A funding rate percentile of N means N% of the asset's 8-hour funding cycles in the last two years printed at or below the current rate. The 0th percentile is the most negative reading in the 2-year window; the 100th is the most positive. A current reading at the 1st percentile is therefore an unusually negative print historically.

Question 3

What does a negative funding rate mean?

Accepted Answer

Negative funding means short positions pay long positions at each 8-hour funding settlement on Binance perpetuals. It is the reverse of the normal state where longs pay shorts. Negative funding signals that the order book is leaning short and the exchange is incentivising longs to take the other side.

Question 4

What is a funding streak?

Accepted Answer

A funding streak is the run of consecutive 8-hour cycles that share the same sign as the latest cycle. A 3-day negative streak means nine consecutive cycles of negative funding. Streaks are flagged 'rare' when the current length is in the top 10% of historical same-direction streaks for that asset.

Question 5

Which crypto perpetuals does MarketTrace track funding for?

Accepted Answer

MarketTrace tracks funding rates for the six largest USDT-margined perpetual pairs on Binance: BTC, ETH, SOL, BNB, XRP and DOGE. Cross-exchange feeds from Bybit and OKX are part of Phase 3.

Question 6

How often is the funding rate updated on the dashboard?

Accepted Answer

Funding rates settle every 8 hours on Binance perpetuals (00:00, 08:00 and 16:00 UTC). The MarketTrace dashboard refreshes its current-rate read every 60 seconds and recomputes the 2-year percentile on each refresh.