| Funding Rates | |
|---|---|
| Type | concept |
| Created | Thu Apr 16 2026 00:00:00 GMT+0000 (Coordinated Universal Time) |
| Updated | Thu Apr 16 2026 00:00:00 GMT+0000 (Coordinated Universal Time) |
| Tags | trading, funding, perpetuals, mechanics |
| Sources |
raw/inbox/hyperliquid-official-docs
|
| Related | perpetual-futures, oracle-system, hypercore |
Funding Rates
Funding rates are peer-to-peer hourly payments between long and short position holders on Hyperliquid. They keep perpetual contract prices aligned with spot oracle prices. No fees are collected by the protocol on funding payments.
Components
- Interest rate: Fixed at 0.01% per 8 hours = 0.00125% per hour = 11.6% APR (paid to shorts)
- Premium: Variable, based on price divergence between perp and oracle
When perps trade above spot → longs pay shorts (positive rate). When perps trade below spot → shorts pay longs (negative rate).
Formula
8-hour funding rate:
F = Average Premium Index (P) + clamp(interest rate - P, -0.0005, 0.0005)
Premium calculation:
premium = impact_price_difference / oracle_price
For HIP-3 perps:
premium = (0.5 * (impact_bid_px + impact_ask_px) / oracle_px) - 1
Mechanics
- Premium sampled every 5 seconds, averaged over the hour
- Payment:
position_size × oracle_price × funding_rate(uses oracle price, not mark price) - Cap: 4% per hour
Example
Given: Interest rate 0.01%, impact bid $10,100, spot $10,000, 10 BTC long:
- Premium: ($10,100 - $10,000) / $10,000 = 1%
- Clamp: min(max(0.01% - 1%, -0.05%), 0.05%) = -0.05%
- Final rate: 1% + (-0.05%) = 0.95%