> For the complete documentation index, see [llms.txt](https://docs.boba.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.boba.xyz/perpetuals/funding-rates.md).

# Funding Rates

## What Are Funding Rates?

Funding rates are periodic payments between long and short traders to keep the perpetual price aligned with the spot price.

### How It Works

* **Positive funding rate:** Longs pay shorts
* **Negative funding rate:** Shorts pay longs

### Why Funding Rates Exists

Without funding rates, perpetual prices could drift significantly from spot prices. Funding creates an incentive to:

* Go short when perp price > spot price (earn funding)
* Go long when perp price < spot price (earn funding)

This arbitrage keeps prices aligned.

***

## Checking Funding Rates

Funding history can be viewed in the "Funding History" tab under the chart in the advanced view.

<figure><img src="/files/Dj7YsltjfFILFyWikfcf" alt=""><figcaption></figcaption></figure>


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