For example, if the virtual price of BTC is $48,200 and the market price is $48,000, then anyone who "bought" bitcoin on this virtual market will pay anyone who sold a sum of $200 for this 8 hour payment. If instead the virtual price was $50,000 and the market price was $48,000, then the funding rate payment would be $2,000. As the prices move, so does the funding rate. Note, actual funding rate formulas are a bit more complex, but for illustrative purposes, the above idea is correct.