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RISK · FUNDING BUDGET

Funding-Cost Budget: A Worked Crypto Example With Fees Included

Holding perpetual positions for days costs funding at every settlement. A funding budget shows what your holding style costs per month.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Funding budget = position notional × funding rate × settlements held, summed over trades. Example: $20,000 average notional, held two days on an 8-hour venue (6 settlements), average funding +0.01% per 8h paid by longs: $12 per trade. Thirty such trades a month cost $360. Funding varies and can flip sign, so budget from historical averages, convert hourly venues to the same basis, and compare with fees.

Worked example

StepValue
Avg notional$20,000
Holding time2 days
Settlements (8h venue)6
Avg funding paid0.01% per 8h
Per trade$12
30 trades / month$360
Illustrative monthly cost lines ($)Illustrative monthly cost lines ($): Fees 480 $; Funding 360 $; Slippage 150 $.ILLUSTRATIVE MONTHLY COST LINES ($)Fees$480Funding$360Slippage$150
For multi-day holds, funding rivals fees. Original ChartsPod editorial graphic.

Reducing funding cost

Funding budgetFunding budget: Average holding time; Historical funding averages; Interval per venue converted; Shorter holds or spot alternatives; Funding reported separately in journal.FUNDING BUDGETAverage holding timeHistorical funding averagesInterval per venue convertedShorter holds or spot alternativesFunding reported separately in journal
Make it a visible line. Original ChartsPod editorial graphic.

Interval conversion: Crypto Funding Rates: Compare One-Hour and Eight-Hour Payments. Backtests: Funding Costs in Perpetual Backtests: Use Settlement Timestamps.

Conclusion

Related: Funding Costs in Perpetual Backtests: Use Settlement Timestamps, Annualized Funding Rates: How to Read the Data With Price Context.

Plan the same calculation with ChartsPod's position planner.

Open the ChartsPod terminal

Funding budget = position notional × funding rate × settlements held, summed over trades.

Put Funding-Cost Budget next to price, flow and positioning in one workspace.

Open a ChartsPod workspace

Questions readers ask

How do I estimate funding costs?

Notional × rate × settlements held.

Does funding change?

Yes; use historical averages and expect variation.

Is spot cheaper for long holds?

Spot has no funding; compare total costs.

Sources and methodology

Arithmetic uses standard sizing formulas. Fee rates (0.05% taker, 0.02% maker), slippage and funding values are illustrative; check your venue's schedule. Liquidation figures are simplified approximations; exchanges calculate them with their own maintenance-margin rules (see Bybit's documentation).

  1. Bybit: Liquidation process — mark price and margin modes.
  2. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.