Binance Funding Rate
Binance annualized funding rate
| Property | Value |
|---|---|
| Category | Market Data |
| Unit | % |
| Resolution | 1d |
| Assets | BTC |
| Tier | Pro |
| API Endpoint | GET /v1/funding/exchange |
| Field | annualized_apr |
Overview
Annualized perpetual funding rate on Binance, the world's largest cryptocurrency exchange by trading volume and open interest. Binance's BTC/USDT perpetual is consistently the most liquid crypto derivative globally, often accounting for 25–35% of total BTC futures open interest.
How Binance Calculates Funding Rate
Binance uses a two-component formula settled every 8 hours (00:00, 08:00, 16:00 UTC):
Funding Rate = Premium Index + clamp(Interest Rate − Premium Index, −0.05%, +0.05%)
- Interest Rate: Fixed at 0.01% per 8 hours (0.03% daily). Represents the cost-of-capital differential between the quote currency (USDT) and base currency (BTC).
- Premium Index: Measures the deviation between the perpetual mark price and the spot index price, sampled every minute over the 8-hour period and time-weighted averaged.
- Clamp function: Limits the interest rate component to ±0.05%, ensuring the funding rate is primarily driven by the premium/discount rather than the fixed interest rate.
The result: when the perp trades above spot (premium), funding is positive and longs pay shorts. When below spot (discount), funding is negative and shorts pay longs.
Key factor: Binance's sheer liquidity means its funding rate often leads other exchanges. Divergences between Binance and smaller venues create cross-exchange arbitrage opportunities.
Interpretation
- Binance funding is widely considered the "benchmark" rate due to its dominant market share
- Sudden spikes in Binance funding often precede those on other exchanges by minutes to hours
- Binance caps the maximum funding rate at ±0.5% per 8 hours (±75% annualized), limiting extreme events
- During major liquidation events, Binance funding can briefly decouple from smaller exchanges
Use Cases
- Tracking leveraged sentiment on the dominant exchange — what Binance traders do often foreshadows broader market moves
- Basis trade yield: long BTC spot + short Binance BTCUSDT perp, harvesting positive funding
- Comparing Binance rates to Bybit/OKX rates for cross-exchange arbitrage signals
- Monitoring divergence between Binance and the OI-weighted aggregate as a market structure indicator
API Usage
curl -H "Authorization: Bearer YOUR_API_KEY" \
"https://api.blocklens.co/v1/funding/exchange?exchange=binance&start_date=2024-01-01&end_date=2024-12-31&limit=365"
Related Metrics
- Annualized Funding Rate (OI-Weighted) — OI-weighted average annualized funding rate across 7 exchanges
- Futures Open Interest — Total futures open interest across all exchanges in USD
- Bybit Funding Rate — Bybit annualized funding rate