Funding-Cost Budget: When the Common Rule Produces a Misleading Result
A funding rate of 0.01% per 8 hours looks tiny. Annualised on notional — and multiplied by leverage relative to equity — it's a real cost.
Short answer
Funding of 0.01% per 8 hours is about 10.95% per year on notional (three settlements a day). On 3× notional relative to equity, that's ≈ 32.9% of equity per year if paid continuously. Rates vary and can reverse, and some symbols settle more often, so check the interval. Set a funding budget for long holds, track funding paid per position, and compare it with the expected move.
Worked example
| Step | Value |
|---|---|
| Rate | 0.01% per 8h |
| Per year on notional | ≈ 10.95% |
| Notional ÷ equity | 3× |
| Per year on equity | ≈ 32.9% |
| Interval | Check per symbol |
Budgeting
| Step | Detail |
|---|---|
| Interval | fundingIntervalHours |
| Expected rate | Recent settled average |
| Hold time | Days × settlements |
| Budget | Max % of equity |
Funding by holding time in a journal: Trading-Journal Time-in-Trade: A Worked Crypto Example With Fees Included.
Conclusion
Related: Trading Fee Budget in Crypto: When the Common Rule Produces a Misleading Result, Trading-Journal Time-in-Trade: A Worked Crypto Example With Fees Included.
Plan the same calculation with ChartsPod's position planner.
Open the ChartsPod terminalFunding of 0.01% per 8 hours is about 10.95% per year on notional (three settlements a day).
Put Funding-Cost Budget next to price, flow and positioning in one workspace.
Open a ChartsPod workspaceQuestions readers ask
How much does 0.01% funding cost per year?
About 10.95% of notional.
How does leverage affect it?
Multiply by notional ÷ equity.
Can funding be received?
Yes, when your side is paid.
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).
- Bybit: Liquidation process — mark price and margin modes.
- 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.