Hotcoin imposes caps on the Funding Rate to ensure the maximum leverage can still be utilized. To do this, two caps are imposed:

• The absolute Funding Rate is capped at 75% of the Initial Margin - Maintenance Margin. If the Initial Margin is 1% and the Maintenance Margin is 0.5%, the maximum Funding Rate will be 75% * (1% - 0.5%)= 0.375%.
• The Funding Rate may not change by more than 75% of the Maintenance Margin between Funding Intervals.