Binance, Exchanges

What Are Binance Funding Rates?

Binance Funding rates are the fees charged by the exchange to borrow or lend cryptocurrencies. The fees are expressed as a percentage of the total loan amount and are paid daily.

Borrowers pay funding fees to lenders, and lenders receive funding fees from borrowers.

Binance offers two types of funding: margin funding and spot funding. Margin funding is used to trade on leverage, while spot funding is used to trade on the spot market.

The fees charged by Binance for margin funding are:

– 0.02% for Maker orders (lenders)
– 0.02% for Taker orders (borrowers)

The fees charged by Binance for spot funding are:

– 0.1% for Maker orders (lenders)
– 0.2% for Taker orders (borrowers)

Binance has a loan limit of 100 BTC per user. The minimum loan amount is 0.

001 BTC, and the maximum loan term is 30 days. Borrowers can repay their loans early, but they will still be charged the full interest rate for the entire loan term.

Lenders can set their own interest rates, but Binance will charge a 10% fee on all earnings from margin funding. Lenders can also choose to automatically reinvest their earnings back into margin funding, which will allow them to earn compound interest on their loans.

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