🫡 How is funding calculated in Upscale?
Some of you may have noticed that the funding amount on certain positions has changed. Here’s why — and how the calculation works.
📊 First, the key point: funding in prop trading works differently from funding in the perpetual futures market.
In the regular market, funding is a payment between market participants: depending on market conditions, either longs pay shorts or shorts pay longs.
💼 Upscale works differently
You trade with capital provided by the platform.
While your position remains open, Upscale manages the risk associated with it: hedging through external venues and covering costs such as market funding, borrowing costs, bid-ask spreads, liquidity, and potential differences between your position and its market hedge.
These costs arise regardless of whether the position is Long or Short.
That’s why funding in Upscale represents the cost of keeping a position open. It applies to both Long and Short positions.
🧮 How is the amount calculated?
Funding is calculated based on the full position size, including leverage.
For example:
$1,000 margin × 5x leverage = a $5,000 position.
Funding is calculated on the full $5,000.
✍️ Why did the amount change?
We recently discovered that, in some cases, leverage was not being taken into account when calculating funding.
For example, a position could be opened with 5x leverage while funding was calculated as if the leverage were 1x.
We’ve fixed this — funding is now always calculated based on the full leveraged position size.
Based on daily statistics after the update, the total amount of funding charged increased by approximately 2.5x on average. The difference may be more noticeable for individual positions depending on the leverage used.
📉 At the same time, we reduced the base funding rate
To keep the cost of holding positions balanced, we:
• reduced funding for Forex pairs by 5x starting August 7;
• reduced funding for cryptocurrencies by 2x starting August 19.
👀 How can you avoid funding charges?
Funding is not charged on every price tick — it is applied at fixed intervals. For crypto, it is charged every 8 hours. For other assets, once per day.
Don’t want to pay funding? Close your position even one minute before the funding charge and continue trading afterward.
💡 How is the funding rate determined?
The rate is set by Upscale based on the cost of capital and the expenses associated with managing market risk.
As a general reference, it ranges from 3% to 20% annually, depending on the market and current market conditions.
We want you to understand the trading conditions before opening a position — not figure them out afterward. That’s why the funding rate, charge time, and amount of the next funding payment are always available in advance.
You can always find more information about funding
https://doc.bookflow.sh/trading-mechanics/funding.Best regards,
The Upscale Team
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