Our Margin Funding feature goes hand in hand with margin trading. If you are not a trader and prefer safer returns, this feature is for you.
Through your Funding Wallet, Ethfinex allows you to provide funding to traders, in any of our funding currencies, to support their margin trading. You can enter offers with your own chosen terms (return rate, duration and total amount). When an offer is taken by a trader, the money in your funding wallet will be used by the trader to buy or sell tokens (open a position); when the trader completes the trade, the tokens are bought or sold back, and the money is returned to your wallet.
Margin funding interest is paid to the funding provider in the same currency provided.
If a trader borrows USD to long ETH, the trader pays the funding cost to the funding provider (you) in the equivalent value of USD, at the agreed upon USD funding rate.
If a trader borrows USD to short ETH, the trader pays the funding cost to the funding provider in the equivalent value of ETH at the agreed upon ETH funding rate.