# Funding Rate Rebates ***This feature will sunset on Friday, May 15th at 3PM UTC.*** The Funding Rate Rebates program enables traders to receive up to a 15% rebate on funding payments incurred on positions paying funding. This program applies to all RWA markets listed on Lighter. The position receiving funding remains unaffected by this program. ### How it works Funding Fee Rebates are based on two components: having a [Premium Account](/trading/trading-fees.md#premium-fee-tiers) and staking. Premium Account traders automatically receive a 6% discount per hourly funding. A trader can earn an additional 9% discount through staking, for a total discount of 15%. The staking bonus scales with the amount of LIT staked and is capped at 9% when staking 50,000 LIT. **While funding rates remain market-driven, the rebate benefit a trader receives will not exceed the rebate benefit given in case the funding rate would be equal to the** [**interest rate component.**](/trading/funding.md#funding-rate-calculation) Examples: Assume the following: * Position value: **$1,000** * Discount percentage: **15%** * Interest rate component: **0.01%** The funding amount eligible for rebate is calculated as: > **min(Funding Rate, Interest Rate Component) × Position Value** The rebate is then: > **Eligible Funding × Discount Percentage** Rewards scale based on the amount of LIT staked. The scaling is controlled by an exponent parameter, currently set to 1, meaning rewards increase linearly up to the 50,000 LIT cap. This parameter may be adjusted in the future to refine the reward curve. #### Sub Accounts and Staked LIT Effective staked LIT is calculated on a consolidated basis. Staking across the main account and all associated sub-accounts is aggregated, and funding rate rebates are applied accordingly, subject to the 10% annualized cap. #### Rebates Distribution Rebates are distributed daily at 00:00 UTC as an L2 transfer to the trader’s account from the Lighter Rebates Fund (`0xc4535ceeA637b3B1bcdf5932603A4DbC00Ad2772`). The Funding History section displays all paid and pending rebates. A payment will be processed only if the amount exceeds $1. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.lighter.xyz/trading/funding/funding-rate-rebates.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.