Dear BIT Users,
In order to calculate the funding rate more accurately, the Premium Index (P) component will be adjusted on 2024-06-05.
Before the change:
Formerly, the Premium Index (P) was calculated based on the Mark Price and Index Price.
Premium Index (P) = (Mark Price - Index Price) / Index Price
After the change:
The Premium Index (P) will be calculated based on Bid 1/Ask 1 and Impact Bid/Ask obtained from the order book. Bid 1/Ask 1 is also known as the Best Bid/Best Ask or highest bid/lowest ask.
Impact Bid/Ask is described here in more details.
The Premium Index (P) is calculated as:
If (Index < Impact Bid), P = (Impact Bid - Index)/Index*100%
If (Index > Impact Ask), P = (Impact Ask - Index)/Index*100%
If (Index < Bid 1 and Index >= Impact Bid), P = (Bid 1 - Index)/Index*100%
If (Index > Ask 1 and Index <= Impact Ask), P = (Ask 1 - Index)/Index*100%
If (Index >= Bid 1 and Index <= Ask 1), P = 0
Please see the updated funding mechanism here and be aware of the potential funding fee changes.
Risk Warning
Cryptocurrency prices are highly volatile, and trading involves risks. Please ensure that you are aware of the risks associated with cryptocurrency trading and trade with caution. BIT will not be responsible for your trading losses.
Thanks for your support!
BIT Team
June 5, 2024