How Funding Rates Work on Veranta

Funding is the mechanism that keeps a perpetual’s price tethered to its underlying index. On Veranta, funding flows between longs and shorts based on open-interest imbalance.

The mechanics

• When longs outweigh shorts, longs pay shorts — and vice versa
• Rates update continuously and accrue against open positions
• Balancing the skew earns you funding instead of paying it

Reading the rate

Every market page shows the live funding rate and the current open-interest skew. Persistent positive funding often signals crowded longs — useful context before you enter.