Funding Rates and Position Stability

GMX and Similar Futures Platforms:

• Employ funding rates to balance long and short positions

• Users pay or receive funding fees, which can eat into profits or exacerbate losses

• Position sizes can fluctuate based on funding rate payments

MortgageFi:

• No funding rates

• Fixed loan amounts in the borrowed asset

• Position size remains stable throughout the loan term

• Predictable costs through fixed USD denominated repayments