Funding Rate Caps will be applied on DueDEX to ensure the maximum leverage can still be utilized. There are two caps:
- The absolute Funding Rate is capped at 75% of the Initial Margin - Maintenance Margin. For example, If the Initial Margin is 1% and the Maintenance Margin is 0.5%, the maximum Funding Rate will be 75% * (1% - 0.5%) = 0.375%.
- The Funding Rate shall not change by more than 75% of the Maintenance Margin between continuous two Funding Intervals.
Please note that DueDEX does not charge any fees on funding; the funding is exchanged directly between the long and short position holders.