Periodic payments between traders in perpetual futures contracts. The mechanism is designed to keep the contract price anchored to the spot price of the underlying asset. When the market is overheated and most traders hold long positions, the funding rate turns positive — longs pay shorts. When short positions dominate, the flow reverses. Funding is paid automatically according to the platform's schedule. The funding rate can serve as a sentiment indicator, though it is not a reliable predictor of price direction.