First Determine Who Pays Whom
The same asset trades in separate order books on Binance, Bybit and OKX. Contract prices and funding rates can differ. This guide considers linear perpetuals with the same underlying and comparable settlement currency; inverse contracts require a different notional calculation.
| Rate | Long | Short |
|---|---|---|
| + | Pays | Receives |
| − | Receives | Pays |
For the same comparison period, the lower rate belongs on the long leg and the higher rate on the short leg. At −0.01% and +0.04%, the long on the first venue and short on the second both receive funding. With two positive rates, the long pays the lower rate and the short receives the higher one; with two negative rates, one leg also pays.
This determines payment direction, not a complete trade. Verify eligibility and the calculation against the contract’s rules. Start with the funding-rate guide for the basic mechanism.
The Schedule Belongs to the Contract, Not the Whole Exchange
Eight hours is a common baseline, not a universal rule. Record each leg’s native interval and next settlement in the same timezone before calculating. This summary was checked against official sources on October 18, 2026; verify current parameters for the specific pair on its exchange.
| Venue | What to Check |
|---|---|
| Binance | The baseline is 8 hours; 4-hour and hourly cycles also exist. USDⓈ-M rules allow 8-hour or 4-hour cycles to switch to hourly after a settlement reaches a rate limit. Check the current interval, limits and countdown. |
| Bybit | Intervals and limits are pair-specific. Reaching a rate limit at settlement can switch a contract to hourly payments. An 8-hour contract uses 00:00, 08:00 and 16:00 UTC; that is not the schedule for every contract. |
| OKX | Supported intervals are 8, 4, 2 and 1 hour. Crypto perpetuals can step down through intervals when funding reaches a limit. Check the contract details; automatic adjustment rules differ for TradFi contracts. |
A current rate can change before settlement. Observation history records what was visible at snapshot times; settled funding history records completed settlement rates. Your exchange transaction records confirm the amount actually paid to or charged from your account.
On rates changing before settlement: Bybit — Introduction to Funding Rate.
Compare the Same Time Window, Not Bare Percentages
An educational example: +0.01% per hour versus +0.04% per eight hours. If rates remain unchanged, the first corresponds to +0.08% over eight hours. Although 0.04 is larger than 0.01, comparing them without their periods ranks them incorrectly.
This is linear normalization for comparison, without reinvestment. The actual amount over a holding window is the sum of each venue’s individual settlements. Exiting before one settlement does not automatically create a proportional payment just because the screen uses a common interval.
VoltArb Rates and Heatmap help compare rates on a common 8-hour basis. For a holding plan, return to each contract’s native interval and countdown. APR is another linear scale, not your return on capital.
Educational Binance–Bybit Pair: Positive Funding, Negative Net Result
A hypothetical model, not current exchange rates or fee tiers: long Binance at −0.01% and short Bybit at +0.04%. Assume both linear contracts settle every eight hours, positions remain open through two settlements at each venue, and each leg has a 10,000 USDT notional at every settlement.
Per settlement, the long receives 10,000 × 0.0001 = 1 USDT and the short receives 10,000 × 0.0004 = 4 USDT. Two settlements produce 10 USDT combined. Funding is based on notional, not just posted margin.
The four fills are opening and closing both legs. For simplicity, the model assigns 10,000 USDT notional to each fill; actual fees depend on each fill’s quantity and price. The loss from the changing price gap and additional execution costs are separate assumptions.
Holding longer does not automatically repair a losing model: funding, the price gap and margin requirements may change. Refresh every input for the next calculation and include other applicable costs.
Account for Both Legs’ Cash Flows
Reconcile the outcome in one currency: the long’s price P&L plus the short’s price P&L, plus received and minus paid funding, less trading fees and other costs. If legs settle in different assets, include conversion and the value changes of those assets.
Separate a pre-trade estimate from an after-trade account. An estimate must include depth and slippage relative to quotes. When calculating P&L from actual fill prices, that price effect is already included and should not be subtracted again.
Include borrowing costs where borrowing is actually used; with a spot leg, also check transfer or rebalancing costs. See the route-cost example.
How to Research a Pair in VoltArb
- Start with free Rates. Find the asset, expand its venues in Table view or compare them in Heatmap.
- Verify contract units, native-period rate, common comparison period and each venue’s next settlement.
- In Pro, open Arbitrage and select a long/short pair. Verify direction and matched exposure; a shared asset name is not enough.
- Inspect observation history and coverage. An attractive current gap may be a recent change. Observations are not a ledger of settled payments.
- Check both books for size and estimate entry, holding and exit costs. Save the route in Watchlist if you want to revisit the research.
Rates is free; Arbitrage and Watchlist require Pro. Saving a route does not open exchange positions. With free access, continue checking the selected contracts directly on their venues.
Compare rates in free Rates → · Research a pair in Pro Arbitrage
A Price Hedge Does Not Combine Two Margin Accounts
A long and short in the same asset reduce directional exposure only with the correct size and both legs filled. Partial fills leave an imbalance. The price gap between venues can also move against the position.
A profit at one venue does not automatically replenish margin at the other. Each exchange evaluates the position under its own rules. Paying funding reduces available funds; leverage, mark price and maintenance margin affect liquidation risk.
Do not base the calculation on entering or exiting at the last second: funding processing need not coincide exactly with the displayed timer. Bybit explicitly warns that trading around settlement can leave inclusion in that cycle uncertain.
Bybit funding deduction and settlement timing · Leverage, margin and liquidation
Common Questions
Which of the three venues is best for funding?
There is no permanent winner based on venue name alone. Compare specific contracts, your fee tier, access, depth and history over the chosen window.
Is an hourly interval automatically better?
No. Compare payment totals over the same window. More frequent settlement does not by itself create compounding or guarantee a larger amount.
Can I build a setup on one venue?
Spot and a perpetual offer a different setup, such as spot plus a short at positive funding. Spot has no equivalent funding payment, but basis, costs and margin still matter. This is not a comparison of two venue funding rates.
A practical mistake is seeing a positive rate gap and skipping the settlement calendar. Start with two specific contracts: do units match, which period is compared, and which payments fall inside the holding window? Then calculate the outcome after costs.
Official Sources
- Binance — Introduction to Binance Futures Funding Rates
- Bybit — Funding Fee Calculation
- Bybit — Introduction to Funding Rate
- OKX — Perpetual funding fee mechanism
Sources checked on October 18, 2026. Exchanges can change rules and individual contract parameters. Rates, fees and amounts in the worked examples are educational, not a record of an executed trade.