Our Methodology — How We Track & Calculate Funding Rates

—
title: “Our Methodology: How Funding Alerts Collects and Verifies Data”
slug: “methodology”
author: “Hasnain Ali”
date: 2026-07-02
schema_type: Article
—

# Our Methodology

Transparency is the foundation of trust. This page explains exactly how
Funding Alerts collects, verifies, and displays funding rate data from
exchanges. We believe you should know how the sausage is made.

## Data Sources

We collect funding rate data from these exchanges:

| Exchange | Type | Funding Interval | API Method |
|———-|——|——————|————|
| Binance | CEX | 8h | REST API |
| Bybit | CEX | 8h | REST API |
| OKX | CEX | 8h | REST API |
| Hyperliquid | DEX | 1h | On-chain indexer |
| dYdX | DEX | 1h | On-chain indexer |
| Kraken | CEX | 8h | REST API |
| KuCoin | CEX | 8h | REST API |
| Bitget | CEX | 8h | REST API |
| MEXC | CEX | 8h | REST API |
| Gate.io | CEX | 8h | REST API |

**Not in scope:** CEXes without public APIs, DEXes without on-chain
indexing, and exchanges with <$1M daily volume. ## Collection Frequency - **Real-time data** (predicted next funding): refreshed every 30 seconds - **Historical data**: refreshed every 5 minutes - **Daily aggregates**: calculated at 00:00 UTC ## Calculation Methods ### Funding Rate (8h basis) Direct from exchange API. No transformation. ### Annualized Rate (APR) Simple formula: ``` APR = Funding Rate (per window) × Windows per Year ``` For 8h funding: APR = rate × 1095 For 1h funding: APR = rate × 8760 We display the **simple APR** (not compounded) for consistency across exchanges. ### 7-day Average APR Average of all funding payments over the last 7 days, annualized. ### 30-day Average APR Average of all funding payments over the last 30 days, annualized. ## Data Quality Checks We perform these validations before displaying data: 1. **Staleness check** — if data is >5 minutes old, hide it
2. **Sanity check** — reject funding rates >5%/window (likely API error)
3. **Cross-exchange sanity** — if same asset has wildly different rates
across exchanges, investigate
4. **Volume filter** — hide pairs with <$100K 24h volume 5. **Exchange health** — if exchange API is down, mark as offline ## What We Don't Do 1. **We don't use your data** — all screener usage is anonymous aggregate 2. **We don't sell order flow** — we don't route orders to exchanges 3. **We don't take advertising from exchanges** — we may link to exchanges but never accept payment for placement 4. **We don't trade against you** — Funding Alerts is a data product, not a trading desk ## Update Cadence - **Screener data**: real-time - **Blog posts**: 2-4 per month - **Glossary**: as needed - **Methodology**: reviewed quarterly ## Source Code and Data Verification We believe in **verifiability**. The code that powers our screener is [open source on GitHub](https://github.com/funding-alerts/data-pipeline). You can: - Inspect the data collection logic - Run the same queries yourself - Verify any number we display ## Corrections and Updates If you spot an error: 1. Email corrections@fundingalertss.com 2. Or open an issue on our GitHub 3. We typically respond within 24 hours 4. Critical errors (data accuracy) fixed within 1 hour ## Contact For methodology questions: - Email: hello@fundingalertss.com - GitHub: https://github.com/funding-alerts - Twitter: https://x.com/fundingalertss ## Disclaimer Funding Alerts is an **informational tool**. We do not provide financial advice. All data is provided "as is" without warranty. Always verify critical data points with the source exchange before trading.