# Funding Rate

The Funding Rate is calculated and charged/paid hourly, and the specific calculation formula is:

$$
FundingRate=\[APR+clamp(InterestRate-APR,0.05%,-0.05%)]/8
$$

* PR is calculated every 5 seconds.  
* Average Premium Rate (APR) = (1\*PR\_1 + 2\*PR\_2 + 3\*PR\_3 +…+ n\*PR\_n) / (1+2+3+…+n)
* n∈\[1, 720], if n reaches 720, it means a whole calculation circle is finished, and the Funding Rate would be executed with this exact value.