What is funding in Upscale:
In Upscale, funding differs from funding on the perpetual futures market. On a regular market, it is a mutual settlement between participants: depending on the situation, it is paid either by traders in Long or by those in Short.
In Upscale, funding is the cost of carrying an open position. While the trade remains active, the platform manages the associated risk, hedges it on external venues, and incurs costs for market funding, borrowing fees, liquidity, the spread, and possible divergence between the trader's position and its market hedge.
Therefore, funding is charged on both Long and Short positions.
How the amount is calculated:
Funding is calculated on the full position size, including leverage.
For example, with a margin of $1,000 and leverage of x5, the position size is $5,000. Funding is calculated precisely on this amount.
Why have the charges changed?
Previously, in some cases, leverage was not taken into account. A position with x5 leverage was calculated as if it were x1.
We have fixed the mechanics: now funding is always calculated on the full position size. As a result, the total funding amount in the daily statistics has increased by about 2.5 times on average. On individual trades, the change may be more noticeable, as it depends on the chosen leverage.
To maintain a balanced cost of carrying a position, Upscale has reduced the base rates:
for currency pairs by 5 times from August 7;
for cryptocurrencies by 2 times from August 19.
When is funding charged?
For cryptocurrencies, funding is charged once every 8 hours. For other assets, once a day.
If you close a position before the next charge, funding will not be deducted for it.
The rate, time, and amount of the next charge are always available in advance on the platform.
