Our funding system had several shortcomings and we’ve been considering several adjustments over the past couple of weeks. To mention a few:
- The funding rate for the current interval was not fixed, meaning market makers had to compensate for this uncertainty with wider spreads.
- The fixed funding step size meant that the funding rate would adjust very slowly even if the market conditions had drastically changed.
- Even a very small constant offset of our mid price could result (over time) in the funding rate being maxed out.
To remedy these shortcomings we’ve made the following changes:
- The funding rate for the current interval is now fixed.
- The step size is now variable and proportional to the difference between the 1Fox and the index price, allowing our funding rate to adjust as slowly or rapidly as needed.
- The new funding rate step size formula means that small offsets to the index price no longer accumulate and lead to a very high/low funding rates.
You can view the new funding rate formula and an example on how to calculate the next funding rate here: https://1fox.com/trade/#stats-funding-rates.
Here is the list of all changes introduced with this update:
- Increased the maximum leverage for the BCHUSD market to 5.
- Moved currency selector into sidebar on mobile version.
- Order book chart now displays the correct base currency.
- Fixed currency being displayed as “undefined” in OHLC chart.
- Fixed floating point display issues in orderbook chart.
- Order-create profit/loss calculator fields are not longer validated when creating an order.
- Several minor improvements for the order-create profit/loss calculator.
- Fixed a bug where referral payments for Bitcoin Cash were not paid out.
- New field in market/get API call: current_funding_percentage and estimated_next_funding_percentage. (the redundant estimated_funding_percentage field will be removed with the next update!)
- Fixed the profit/loss calculation for the take/profit and stop loss info boxes.