BLEX technological innovations: adjustment of negative funding fees
Negative funding fees play a crucial role in the digital currency derivatives market, and the latest update to Blex.io is a tweak to this mechanism that aims to be more balanced and optimize the trading experience. The funding fee is a fee for the regular exchange between long and short positions, usually paid by the majority to the minority, which is not charged by the Blex.io protocol itself.
The main purpose of the negative funding fee is to balance long and short positions while encouraging users to hold or open minority positions. This not only promotes the healthy functioning of the market but also makes it costly for the user to continually open or hold long positions, especially if the user maintains a large long position. In Blex.io’s trading system, funding fees are calculated every 8 hours, at 0:00, 8:00, and 16:00 Singapore time each day, and this calculation ensures the accuracy and timeliness of the rates.
Compared to other on-chain perpetual contract trading platforms, BLEX adopts a different funding fee calculation method, which uses market interest rates and asset occupancy rates, among other factors, to calculate the funding fee. In addition, BLEX also provides a more intuitive and easy-to-use interface, as well as more trading features and tools.
It is important to note that the calculation of the funding fee is achieved by taking a weighted average of the hourly base funding fee, ensuring that it reflects the real-time market conditions. Settlement of the funding fee is done between the user and Fee Vault, with a positive funding fee indicating that the user pays the fee to Fee Vault, and a negative funding fee indicating that Fee Vault pays the fee to the user. This mechanism not only increases the transparency of the transaction but also increases the attractiveness of the market.
Blex.io has demonstrated its continued commitment to providing a balanced and silky-smooth trading experience with this negative funding fee adjustment. This adjustment helps ensure the stability of the on-chain perpetual contracts market and incentivizes users to manage their positions more flexibly. This major product update encourages all users to pay close attention in order to fully understand and capitalize on this opportunity, thereby increasing the probability of success of their trading strategies.
In order to further optimize this functionality, Blex.io would like to encourage our users to experience the new features of the negative funding fee adjustment and give us their valuable feedback. Feedback is essential for us to continuously improve our products, to better understand our users’ needs, and to continue to provide better service. This innovative move by Blex.io signals its leadership in the digital currency trading space while providing users with a more optimized trading solution. We invite everyone to join us in this process of improvement and to contribute to the development of the digital currency trading market.
What are the most exciting things going on right now with BLEX?
- A trading competition with a total prize pool of $50,000 USD:
Participate in the trading contest now 👉 https://app.blex.io/#/more/competitions
The Trading Competition is currently in full swing and the winner will walk away with a grand prize of up to $7,500 USD, and the top 50 rankings will be awarded with a total prize pool of up to $50,000 USD! Adhering to the principle of openness and transparency of blockchain, the data of all traders participating in the Trading Competition will be updated in real-time on the official website!
- BLEX Trading Partner Hot Recruitment 🔥:
BLEX is recruiting professional perpetual contract traders for the whole market, BLEX will provide the initial capital, losses will not be counted, but you will take away up to 100% of the profits!
Learn more about BLEX’s program progress and activities. Please stay tuned:
Website: https://blex.io/
Twitter: https://twitter.com/Blex_io
Telegram: https://t.me/bestblex
Medium: https://blex.medium.com/
Whitepaper: https://blex.gitbook.io/blex/whitepaper/abstract
