You shorted DOGE after the 10 AM flush on BYDFi and ended up paying funding
why the rate flipped to -0.0016% while longs were the ones wiped
Key takeaway
If 93.07% of Thursday's big liquidation window hit longs, why were DOGE shorts on BYDFi the ones paying funding by the afternoon? Intermediate tier. BYDFi DOGE_USDT figures below were pulled from the public BYDFi futures market data at 3:55 PM ET on Nov 5, 2026. Market-wide liquidation totals are CoinGlass figures published Thursday afternoon.
The tape. A sell-off in US tech and AI stocks spilled into crypto on Thursday. BTC lost roughly 5.5% over 24 hours, while ETH, SOL and XRP fell 6%-7%. On BYDFi, DOGE_USDT printed a 24h high of 0.07769 and a 24h low of 0.0711, an 8.48% range. The 10:00 AM ET hourly candle went from 0.07423 to 0.07116, down 4.14% in one hour. Market-wide, 818.90 million USD of the 879.92 million USD liquidated in a four-hour window was longs.
The snapshot. At 3:55 PM ET: last 0.07263, fair 0.07263, index 0.07267. Funding -0.0016% per 8h (-0.000016), capped at 2% and floored at -2% per interval, settling every 8 hours, with the next settlement at 7:00 PM ET that evening.
The rule. A negative rate means shorts pay longs at settlement. BYDFi triggers liquidation when the fair price reaches the liquidation price, which happens when the BYDFi risk ratio reaches 100%: (Maintenance Margin + Liquidation Fee) / (Position Margin + Unrealized PNL). On USDT-margined contracts, Maintenance Margin = Average Entry Price x Cont. x Size x Maintenance Margin Rate.
The formula.
funding_payment = notional x funding_rate short pays when funding_rate < 0 maintenance_margin = entry x cont x size x MMR_tier
The worked steps.
- A short of notional N pays N x 0.000016 at 7 PM ET if the rate holds.
- Three settlements at a constant rate: N x 0.0048% per day.
- Fair 0.07263 against index 0.07267: the perp sat 0.00004 under spot. A discount and a negative rate point the same way, with sellers pressing the perp after the breakdown.
- The live tier-1 maintenance margin rate on DOGE_USDT was 0.165%, and the contract allows up to 300x. MMR is set by position size, not by the leverage you pick, so a bigger position moves into a higher tier with a higher rate.
- For the long that bought the 24h high, the down move was 8.48%. Ignoring fees and maintenance margin, it survived only below about L of 11.8 (1 / 0.0848).
Why the sign flipped. Funding follows whoever is crowded now, not who lost money this morning. After a long flush, the weakest longs are gone. Late shorts pile in on the breakdown, the perp trades under the index, and the rate drifts below zero. The crowd that pays is usually the crowd that arrived last. That describes positioning, not where DOGE goes next.
What changes it. The rate is recalculated every interval inside the 2% cap. Bigger positions move into higher MMR tiers. Cross mode shares one margin pool across positions. In extreme conditions BYDFi can adjust max leverage, tier limits and tier MMRs.
Common mistakes.
- Assuming funding is always paid by longs.
- Ignoring the sign change because the number is tiny. The sign is the information.
- Confusing the per-position maintenance margin rate with the account risk ratio that triggers liquidation at 100%.
- Holding a short through settlement without checking the rate first.
FAQ.
Is -0.0016% worth caring about? Per 8h it is tiny. The point is the flip: it tells you positioning moved within hours of the flush.
Do I pay if I close before 7 PM ET? No. Funding is exchanged between positions open at settlement.
Does the liquidation fee matter? Yes. It sits in the numerator of the risk ratio, so the real line sits a little closer than maintenance margin alone suggests.
Why were fair and last identical? In a quiet minute they converge. The gap opens during fast candles like the 10 AM one, which is exactly why liquidation runs on fair.
Did your DOGE funding flip sign this week on the side you hold, and did you catch it before the settlement or after?