# Imbalanced Open Interests: Funding Rate

An imbalance in open interest is never desired. The dominant party pays the other through a funding fee **every 1 hours**. The funding rate fluctuates **based** on the utilization rate of the **LP pool** and the skewness of o**pen interests**.&#x20;

Such a funding fee incentivizes market makers to **provide liquidity** by equalizing **open interests**. This mechanism ensures that liquidity in the LP pool is only **reserved temporarily**, guaranteeing that funds are always accessible for LPs to **withdraw**.
