Margin funding (margin funding interest) needs to be paid either every day or when your position is closed. The funds will be taken automatically from the Margin Wallet. You can choose which option you want for each of your positions:
- Daily*: Margin funding interest will be charged every day around 1:30 am UTC from your Margin Wallet.
- Term: Your unrealized margin funding 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 lifetime of the position, but results in additional funding being reserved to account for the growing balance.
To change from ‘daily’ to ‘term’, navigate to the position section and tap on the daily button, as highlighted below.
When viewing your active margin position in your trading page, your accrued unpaid funding cost would be displayed as shown below under “FUNDING COST”:
The funding cost charged is the combined interest of all underlying borrowed (taken) funding needed to cover that position.
The funds to settle will be deducted from the Margin Wallet, in the same currency. In case the user doesn't hold that currency, a settlement at market rate will take place to cover the negative balance.
Users may retrieve the total cost of interest paid for an open position that was charged daily using their report page. Users may filter their balance ledger using the position # and find the sum of the daily charges.
Lastly, users can view how their funding cost accumulated throughout the entirety of their positions by using the positions audits on the reports page.
*All positions are by default charged daily.