Funding rates
Funding is the payment between longs and shorts that keeps a perpetual’s price near the asset’s. On Hyperliquid it is paid every hour, and it can cost — or pay — a held position more than its trading fees.
Who pays whom
A positive rate means longs pay shorts; a negative one means shorts pay longs. The payment is the position’s notional value times the rate, every hour you hold it. Notional here uses the oracle price, not the mark price.
How Hyperliquid sets the rate
The rate has two parts. The premium measures how far the perpetual trades from the oracle price, sampled every five seconds and averaged over the hour. The interest part is fixed at 0.01% per 8 hours, 0.00125% per hour. The hourly rate is the average premium plus the interest rate minus that premium, clamped to ±0.05%; it is capped at 4% an hour.
In calm markets the rate sits near 0.00125% an hour, which is about 11% a year. In a crowded market it can be many times that, either way.
Reading funding on HyperBase
The terminal and every asset page show the hourly rate and its annualized equivalent. Funding history charts a market’s rate over the last 7 days, and the analytics page compares funding across markets. Your account panel’s Funding tab lists every payment your positions made or received.
A persistently high rate means longs are crowded and paying for it; a negative one, shorts. Funding paid is part of a trader’s real result: the whale positions table shows how much each position has paid since it opened.