Arcus explains funding rates for equity perpetuals during trading hours and weekends
Summary
Arcus has provided an in-depth explanation of funding rates for equity perpetuals (perps), emphasizing their role in maintaining price alignment with underlying assets. Unlike traditional futures contracts, which have specified expiration dates, equity perps allow traders to hold positions indefinitely, which necessitates a funding mechanism to prevent price divergence. When the market is open, funding rates are based on a combination of a premium—reflecting the price difference between the perp and the underlying asset—and a base rate, which accounts for the cost of holding a leveraged position. When equity markets close, the funding rate switches to a fixed base rate, ensuring stability until reopening. This update follows the recent launch of isolated margin positions on Arcus in September 2026, enhancing risk management options for traders.
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Related sources
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