Please refer to the Futures Historical Data on the following link:
AAX’s Funding occurs every 8 hours at 00:00 UTC, 08:00 UTC, and 16:00 UTC. You will only pay or receive fund if you are holding a position at one of the three times. If the position is closed prior to the funding exchange, then you will not pay or receive any funding. The Funding Rate is comprised of two main parts: Premium and Interest.
Futures trading price in AAX (AAX price) may differ from the spot market (index price) due to market force. As a result, traders in both long and short positions have to be compensated due to the actual market prices in the spot market. In this case, AAX futures contracts auto-roll every 8 hours depending on the AAX price and index price at the time. Premium is calculated on the unrealized PnL because the trader has not closed the position. The unrealized PnL represents the trader’s position at the time the rollover takes place.
For example, buying a long future position in BTCUSD, it means that a trader borrows USD to buy BTC in the spot market (vice versa if in short position). Due to the fact that the borrowing cost of BTC (the base currency) is much higher than USD (the quote currency), therefore most traders will go for long positions to take advantage of the lower interest rate to borrow USD to buy BTC.
In order to maintain a balanced supply of long and short futures contracts, AAX’s futures contracts auto roll-over every eight hours to make the traders in short BTC position to pay to those in long BTC position which known as Interest.
Every contract traded on AAX consists of two instruments: A Base currency and a Quote currency.
Take BTCUSD as an example, assuming BTC rate = 0.025% (per day), USDT rate = 0.001% (per day), funding period = 3 (8 hours , 3 times a day)
Delta Interest= (Quote Currency Rate - Base Currency Rate) / funding period= (0.001% - 0.025%) / 3= - 0.008%
Funding takes into account the differences between AAX futures prices and spot prices (Premium), and the differences in interest rate so that either the long position traders pay to the short position traders or vice versa, depending on market conditions.
Now the biggest concern for traders is whether they need to pay or is eligible to receive interest. Simply put, when the Funding is positive, longs pay shorts. When it is negative, shorts pay longs.
A trader has long position of 10000 contracts. AAX price = 4000 and Index price = 4100. Interest rate difference = - 0.008%
Rate payable by long trader = 10000 x ( (1-0.00008) / 4100 - 1 / 4000 ) = - 0.061 BTC
Long traders should receive 0.0061 BTC in this funding interval.
AAX does not charge any fees on funding; it is exchanged directly peer-to-peer.
Vanilla contracts settled in USDT, Inverse contracts settled in BTC.