Funding Rates vs Swap Fees: Why MyFundedPerps Replaced Venue Funding
If you came to MyFundedPerps from a crypto exchange, the funding rate vs swap fee question is probably the first cost difference you noticed. On an exchange, funding is a payment between traders: sometimes you pay, sometimes you receive. At MyFundedPerps we replaced venue-style funding completely with a swap fee that both longs and shorts pay, every hour, on every open position. This article explains why the models differ, the exact rates and timing, and how to factor the swap fee into your holding costs.
How venue funding rates work
On perpetual futures exchanges, funding is the mechanism that tethers the perp price to spot. When the perp trades rich to spot, longs pay shorts; when it trades cheap, shorts pay longs. Key properties:
- Payments flow between traders, not to the venue.
- The rate flips sign with market conditions, so holding can cost you or pay you.
- Intervals and formulas vary by venue, and rates spike during crowded, one-sided markets.
That unpredictability is fine for a live exchange, where funding is doing real economic work. It is less ideal in a simulated evaluation environment, where traders need stable, published holding costs to plan around fixed loss limits.
How the MyFundedPerps swap fee works instead
The swap fee replaced venue-style funding entirely. The rules, straight from our official product graphics:
- Longs and shorts are both debited. Nobody is ever credited.
- Funding rates shown in the terminal are informational only and do not touch your balance.
- The asset class sets the rate. There are no per-symbol overrides, no weekend multipliers, and no admin-adjustable rates.
Rates as of September 2026; the current schedule lives at docs.myfundedperpetuals.com and is plugged into our swap fee calculator.
The exact fee formula
The charge at each boundary is:
fee = position size x mid-price at the boundary x hourly rate
Three details in that formula matter:
- Notional, not margin. The fee is charged on full position notional. Leverage does not change the fee; a $10,000 position costs the same to hold whether you posted $1,000 or $10,000 of margin.
- Priced on the boundary mark, not your entry. If a $10K position drifts to $12K of market value, the next charge computes on $12K. Winners pay more to hold, losers less.
- Mid-price at the boundary. The average of best bid and best ask at the exact hourly boundary sets the charge.
Hourly boundary timing
Charges land on the UTC hour boundary: 00:00, 01:00, and so on, never on a rolling clock. That creates real tactical consequences:
- The size at the exact boundary is what gets charged. Close before the boundary and you skip that hour entirely; there is no prorating.
- Open late in an hour and your first charge can land a minute later, at the next boundary.
- A position held across 24 boundaries pays the full daily rate for its asset class.
Worked example from our graphics: a $10,000 crypto position pays $0.125 per hour, which is $3 per day if the mark holds flat. Hold it five days through every boundary and holding costs alone reach roughly $15, before commissions.
Why the swap fee hits your loss limits directly
This is the part traders most often miss: the swap fee debits your account balance directly, exactly like a realized loss. It is not a separate bucket. Every hourly charge eats into:
- Your daily loss headroom (3% of starting balance on all plans, measured on equity)
- Your static max drawdown allowance (3% Select, 5% Prime, 6% Signature)
On tight drawdown plans, an overnight hold is not free even if price never moves. Budget for it the way you budget for commissions. Our myfundedperps-fees-breakdown article models the full cost stack, and myfundedperps-static-drawdown covers how the floors work.
Funding rate vs swap fee: side by side
Planning around the fee
Practical habits that follow from the mechanics:
- Scalpers and intraday traders: mind the boundary. Closing at 14:58 UTC instead of 15:02 UTC skips an entire hourly charge on every position.
- Swing traders: compute the daily holding cost before entering. The Swap Fee calculator at myfundedperpetuals.com/tools/swap-fee-calculator applies the published schedule by market category, including a dedicated forex version. Enter your notional and holding time and it returns the cost; entry and exit commissions are separate.
- Everyone: remember the charge is on current notional at the boundary mark. A position that has grown costs more per hour than it did at entry.
Frequently asked questions
Do I ever receive funding at MyFundedPerps?
No. The swap fee debits both longs and shorts, and nobody is credited. The funding rates displayed in the terminal are informational only and never touch your balance.
What is the funding rate vs swap fee difference in one line?
Venue funding is a variable payment between longs and shorts that can credit you; our swap fee is a fixed, published hourly holding cost that both sides pay.
Is the swap fee charged on margin or notional?
On notional. A $10,000 position pays the same hourly fee regardless of leverage: $0.125 per hour on crypto at current rates.
Can I avoid the swap fee by closing quickly?
You avoid any hour whose boundary you do not cross. Charges only apply to the size open at the exact UTC hour boundary, with no prorating, so closing before the boundary skips that hour.
Do swap fees count toward my daily loss limit?
Yes. The fee debits your balance directly and reduces daily-loss and drawdown headroom exactly like a realized loss. Factor it in before holding positions for long stretches.