Funding Fee Rate

Perp Shield differs from Aster Perpetual Futures. The Funding Rate of Perp Shield differs from that of Aster Perpetual Futures, Aster will collect a Funding fee rate to balance the LONG and SHORT ratios, which helps to reduce market risk. The calculation formula for this funding fee rate is provided below:

Funding Rate= {clamp{Floor, {ABS[(Long OI - Short OI) * Funding Fee Per Hour/M % ] / Max (LongOI, ShortOI)} ,Cap} }

Parameters:

• Long open interest: The total number of LONG positions on the platform;

• Short open interest: The total number of SHORT positions on the platform;

• Funding Fee Per Hour: The Funding Rate will be charged on an hourly basis. It may be adjusted based on market performance;

• Floor & Cap: The funding rate has a cap and floor. The Funding Fee Rate Floor and cap threshold may be adjusted from time to time based on market performance；

Note: Funding payment is generated hourly. For example, if a user opens a position at 05:12 and holds it until 05:59, no funding payment will be made. However, if a user holds the position until 06:00, then a funding payment will be made.