# Funding fee

### Funding Rate (Future Module)

Highly one-sided markets risk becoming unstable if almost all traders take the same side. To counteract this, Prophex can implement a **funding rate mechanism**, inspired by perpetual futures:

* Traders on the majority side pay a small, recurring fee.
* Traders on the minority side receive the fee.
* The funding rate nudges markets toward balance and discourages overcrowding.

This keeps odds meaningful even in politically or sentimentally lopsided events.

At the start of the markets, the funding fee are at 0.1%
