Futures have a funding fee mechanism (especially on perpetual contracts):
Funding is not paid to KuCoin — it’s exchanged between traders buying and selling.
Every 8 hours, depending on the funding rate, longs might pay shorts or vice-versa. �
KuCoin +1
Example:
If the funding rate is positive, long positions pay short positions.
If negative, shorts pay longs. �
KuCoin
This encourages the futures price to stay close to the spot price.
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