When opening a margin position on Bitfinex, an interest rate is charged for the borrowed funds to maintain the active margin position.
The interest rate 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 rate shown is a daily/term rate, and you will be charged as soon as you have reserved the funding, whether used or unused.
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!
