# Funding Fee Rate

The Funding Rate on Shield Mode differs from that of Aster Perps. Aster will collect a Funding fee rate to balance the Long and Short ratios, which helps 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.


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