When opening a margin position on Bitfinex, an interest is charged for the borrowed funds to maintain the active margin position.
The rate of the interest charged on each position is determined by you through the Funding page or via Bitfinex’s finance matching system, which automatically chooses the best interest rate available to fulfill your order.
The funding cost shown is the unsettled funding cost at the moment. Based on the funding type setting, i.e. daily/term, the cost can be charged daily or once only when the position is closed.
Note: The funding rate is updated hourly when the Flash Return Rate (FRR) is applied.
Example: If you borrow 2 BTC at 0.04% for a full day, you will pay 2*0.0004 = 0.0008 BTC a day.
If you return the funding after 3 hours, you will pay 2*0.0004 x 3/24 = 0.0001 BTC.
Note: Interest owed is calculated precisely to the second.
Important: If you reserve and return funds manually within an hour, you will pay a full hour’s interest regardless of whether the funding has been used in a financed position. For more information, please view our Fees page.
If you have any inquiries, please feel free to contact Bitfinex Support. We are always happy to help!