How do I calculate potential funding payments?

Funding payments are periodic payments exchanged between traders in perpetual futures contracts. To calculate them: multiply your position size by the funding rate, then by the time period. For example, if you hold 1 Bitcoin in a perpetual contract with a 0.01% hourly funding rate, you'd earn or pay approximately $6.30 per hour (assuming $63,000 Bitcoin price). Funding rates fluctuate based on market sentiment—positive rates mean long traders pay shorts, negative rates mean shorts pay longs. Most exchanges display current and historical funding rates on their platforms. Your profit or loss depends on which side of the position you hold. Always check your exchange's specific calculation method, as some variations exist across platforms.