> ## Documentation Index
> Fetch the complete documentation index at: https://docs.turbo.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Funding

> The small hourly payment between longs and shorts that keeps prices tracking the asset.

Funding is a small payment that changes hands every hour between the long side and the short side of a market. It isn't a fee and none of it goes to Turbo — it's the mechanism that keeps a perpetual future's price tracking the asset it represents.

## Why it exists

A perpetual future never expires, so nothing forces its price to converge with the underlying asset's price the way an expiry date does for a traditional future. Funding is what does that job instead:

* When the contract trades **above** the asset's price, longs pay shorts. Being long gets slightly more expensive, being short slightly more attractive — pressure that pulls the price back down toward the asset.
* When the contract trades **below** the asset's price, shorts pay longs — the same pressure, in reverse.

The further the contract drifts from the asset, the stronger the funding pressure — which is what keeps the contract's price anchored even while the underlying exchange is closed.

## What it means for you

* **Depending on your side, you pay it or receive it.** Holding a position doesn't only cost — if you're on the side being paid, funding is income while you hold.
* **The current funding rate is shown in the app** on the market and position screens, so you can see which side pays before you open a trade.
* **It's small per hour, but it accumulates.** For a position held minutes or hours it's usually negligible. For a position held for weeks, it's worth checking what your side has been paying or earning.
* **It's peer-to-peer.** Funding moves between traders. Turbo's revenue is the [trading fee](/fees) — not funding.

## Related

* [Markets](/markets) — how perpetual futures track their assets.
* [Fees](/fees) — what Turbo actually charges.