> For the complete documentation index, see [llms.txt](https://0xfutures.gitbook.io/0xfutures.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://0xfutures.gitbook.io/0xfutures.trade/0xfutures-insights/futures-formula.md).

# Futures Formula

## How Futures Price Determined

The theoretical formula for calculating the futures price from the spot price is as follows:

$$
Futures Price=Spot price\
∗
(1+r
f
​
−d)
$$

where, rf = risk-free rate on an annual basis, and d = dividend

$$
Bitcoin Futures Price
\=Bitcoin Spot price
∗
\[1+r
f
∗
​
(
365
x
​
)]
​
$$

where x = number of days to expiry