When you have a margin position open that requires margin funding, the funding interest generated can be calculated either Daily or by Term. The interest will be taken automatically from your Margin Wallet.
What is Daily Funding
When using Daily, margin funding interest will be charged every day around 1:00 am UTC and deducted from your Margin Wallet.
Note: All positions are by default charged daily.
To change from Daily to Term, navigate to the Position widget. Then, go to the Funding Type section and tap on Daily to toggle.
What is Term Funding
When using Term, your unrealised margin funding interest will only be charged when you close your position. It will be backed by margin funding taken from the P2P Margin Funding market.
Some users prefer Term because it shows the total cost over the position's lifetime but results in additional funding being reserved to account for the growing balance.
To change from Term to Daily, navigate to the Position widget. Then, go to the Funding Type section and tap on Term to toggle.
How to view funding interest for open positions
When viewing your active margin positions on your Trading page, your accrued funding cost would be displayed under the Funding Cost section.
The funding cost charged is the combined interest of all underlying borrowed (taken) funding needed to cover that position.
Note: If you have multiple positions, the displayed funding cost may not be accurate for every single position, but it is an accurate amount in total.
How to settle margin funding interest
The funds to settle Margin Funding interest will be automatically deducted from your Margin Wallet. The interest is deducted in the same currency as the funding you have taken.
If you do not have the currency, a settlement at the market rate will cover the negative balance. You can learn about settlement in our article What is a settlement on Bitfinex.
How to view all margin funding interest for Positions
The total cost of margin interest paid for a position can be found by going to your Reports page.
You can filter your balance Ledger using Category Filter and selecting Position funding cost to find the sum of interest.
If you have any questions, please feel free to reach out to Bitfinex Support. We are happy to help!