> For the complete documentation index, see [llms.txt](https://doc.pairex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.pairex.io/overview/fees/funding-fee.md).

# Funding Fee

Priced by the difference between long and short positions and spot volatility, long pays short when long/short > 1, and vice versa, to balance the long/short ratio and avoid excessive unilateral exposure

The formula is as follows:

**Funding fee** = (Current accumulated funding fee per OI - Initial accumulated funding fee per OI) \* Trade collateral \* Trade leverage