1) The primary mechanism to tether Perpetual contract price to spot price is Funding.
2) Funding occurs every 8 hours at 00:00, 08:00, and 16:00 (UTC Time). You will only pay or receive funding if you hold a position at one of these times.
If you close your position prior to the funding exchange, then you will not pay or receive funding.
When the funding occurs, we prioritize the fee to be charged from the position margin. If the position margin is insufficient (funding fee will continue to be charged until the user’s maintenance margin rate is equal to the minimum), the remaining amount will be deducted from the user’s available balance.
The platform does not charge any fees on funding; it is exchanged directly between traders.
Suppose a trader opened 10000 contracts long at 8:11 AM (Singapore time) at 10,000USDT.
At 10:20, the trader closes the position, then he/she will not be charged for funding fees.
At 12:00, the trader still holds a position. Suppose the BTC price at that time is 10,024USDT and the Funding Rate is 0.025%. Therefore, the trader will need to pay position value * funding rate = (10000/10024)*0.025% = 0.00025 BTC as funding fee to the opposite side as funding fee (if the funding rate is negative, the short side will pay the long side).
4) When the funding rate is positive, longs pay short. Vice versa if it is negative.
5) Wisebitcoin does not charge funding rate to users: it only occurs between traders.