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

# Funding Rate Payments

## What is the Funding Rate Payment?

A mechanism to keep the **Perpetual Futures price** in line with the **spot market** through periodic credits/debits between long and short positions.

## Mark Price

Derived from **publicly available orderbook data**, such as a **VWAP** over a specific period (e.g., 3:45–4:00 PM London Time).

The AX calculation methodology is available in **Section 3.2. Mark Price Calculation** in the Pricing Policy ([https://architect.co/legal/ax/ax-pricing-policy](https://architect.co/legal/ax/ax-pricing-policy)).

## Underlying Price

Sourced from **independent public data sources** (e.g., LSEG, S\&P, ICE, NASDAQ) using a transparent calculation method.

## Frequency

Funding occurs **daily** (or as scheduled), excluding holidays and exchange closures.

Funding for US equities based perpetual futures occur every 30 minutes during the US trading day (10AM-4PM NY time, inclusive), for a total of 13 funding payments.

## Processing Time

At each product's **published settlement time**, funding payments are applied to all open positions. Each product's settlement time is published on the Trade page's Product Specs tab, as well as on the published Product Specifications List ([https://architect.co/products](https://architect.co/products))

Note that AX processes the funding payments on a few minute delay from the published actual funding time. For example for the FX perpetual funding at 4pm London time, the settlement price is struck at 4pm and the position size is taken at 4pm, AX receives the benchmark price from the external index provider up to 5 minutes later and at that time processes the funding payments.

## Settlement Schedule (effective July 6 2026)

| Product Type    | New AX Settlement VWAP Time  | VWAP Length             | Positions Snapshot Time | Typical Processing Time |
| --------------- | ---------------------------- | ----------------------- | ----------------------- | ----------------------- |
| FX              | 3:57PM–4:03PM London Time    | Six 1-minute snapshots  | 4:00PM London Time      | 4:04PM London Time      |
| Precious Metals | 3:57PM–4:03PM London Time    | Six 1-minute snapshots  | 4:00PM London Time      | 4:04PM London Time      |
| Copper          | 12:55PM–1:00PM New York Time | Five 1-minute snapshots | 1:00PM New York Time    | 1:01PM New York Time    |
| Aluminum        | 12:57PM–1:03PM London Time   | Six 1-minute snapshots  | 1:00PM London Time      | 1:05PM London Time      |
| Compute         | 3:55PM–4:00PM New York Time  | Five 1-minute snapshots | 4:00PM New York Time    | 4:05PM New York Time    |
| Treasuries      | 3:55PM–4:00PM New York Time  | Five 1-minute snapshots | 4:00PM New York Time    | 5:30PM New York Time    |
| WTI OIL         | 2:25PM–2:30PM New York Time  | Five 1-minute snapshots | 2:30PM New York Time    | 2:31PM New York Time    |

For US Equities, every 30 minutes from 10am to 4pm NY time (inclusive), we will compare the AX 30 minute trailing TWAP mark against the underlying 30 minute trailing TWAP as oracle. This means NVDA would have 13 fundings per day instead of just one. Fundings will be scaled accordingly (1/13 scaling factor) and capped at +/- 2bps per interval.

## Tracking Mechanism

* If **Mark > Underlying**, longs pay shorts.
* If **Mark \< Underlying**, shorts pay longs.
* The amount is proportional to the price difference, incentivizing price convergence.

## Example

**EUR/USD Perpetual Future:**

* Benchmark: 1.2000 USD/EUR (WMR rate)
* Mark Price: 1.2015 USD/EUR
* Difference: 0.0015 USD

A trader long **100,000 contracts** owes **150 USD** (100,000 × 0.0015) to shorts.\
This daily mechanism aligns the contract price with the underlying.