🟨 Funding Rate: who pays for the party in futures
In futures, positions pay/receive funding according to the long vs short balance.
Positive funding = longs pay shorts
Negative funding = shorts pay longs
🧠 Educational key: high funding = over-leveraged market → risk of liquidations.
Examples:
PEPE funding +0.15% every 8h in euphoria → longs pay for the party → then liquidation -30% → 🚨 prior alert
BTC funding +0.01% stable → healthy market, no excesses → ✔ balanced sentiment
WIF funding +0.22% in 2024 → cascading liquidations shortly after → 🚨 long trap
“Funding does not predict direction, it predicts risk.”
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