All funding payments on BitMEX are instantly realised. For Cross Margin positions, funding goes directly into and comes out of your Wallet Balance. For Isolated Margin positions, received funding enters the isolated position, while paid funding comes out of the Position Margin.
How does funding work with Cross Margin positions?
For Cross Margin positions, funding payments go directly into and come out of your Wallet Balance.
The Unrealised PNL on a Cross Margin position is not locked inside the position. It is shared across your entire account. Because of this, funding payments flow freely between the position and the Wallet Balance.
- Funding received: Added to your Wallet Balance. The additional margin is available for use across all open positions.
- Funding paid: Deducted from your Wallet Balance. This reduces the total margin available for other positions.
This means a funding payment on one Cross Margin position directly affects the available margin for all other Cross Margin positions in your account. A large funding payment received can increase your buffer against liquidation on other positions. Conversely, a large funding payment paid reduces your overall margin.
Isolated Margin operates on a different principle.
How does funding work with Isolated Margin positions?
For Isolated Margin positions, the behaviour differs between receiving and paying funding:
- Funding received: Goes into the isolated position itself. It increases the position’s margin, improving its liquidation price. The funding does not flow into your general Wallet Balance.
- Funding paid: Comes out of the Position Margin allocated to that specific isolated position. It reduces the position’s margin and moves the liquidation price closer to the current market price.
Why does Isolated Margin handle funding differently?
Isolated Margin is designed to ring-fence risk. Each position operates independently with its own dedicated margin. Funding payments stay within the isolated position to maintain this separation. Your Wallet Balance and other positions are unaffected by funding on an isolated position.