Hyperliquid
Hyperliquid funding rates determine who pays whom at hourly settlement
Hyperliquid funding rates determine hourly payments between perpetual traders: positive rates make longs pay shorts, while negative rates make shorts pay longs. The settled rate applies to the open position's oracle-price notional. Funding changes the trading balance without closing the position. The displayed estimate can change before settlement, so its sign does not establish a completed payment.
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Payment direction, payment size and trading profit answer different questions. A short can receive funding while losing money as prices rise. Contract configuration also matters because ordinary perpetuals, builder-deployed markets and Hyperps use different funding inputs.
Bottom line: Changing leverage alone leaves funding unchanged when position size, oracle price and the settled rate remain the same.
Hourly payments change balances without closing positions
Funding changes the trading balance while contract exposure remains open, so a payment does not confirm a profitable trade. Total account value also reflects unrealized profit and loss, which can offset the effect of a funding credit. A funding-history entry separates the payment from those price changes. An absent entry warrants checking the account address and time window before treating the payment as missing.
Who pays whom when the rate changes sign?
A positive settled rate transfers value from longs to shorts, and a negative settled rate reverses that payment direction. Zero funding produces no funding transfer for that interval. Each market has its own rate; the direction in one market says nothing about another.
Rate sign and balance sign
A rate describes the market-wide direction of payment. An account entry describes the resulting debit or credit for a particular position. For a positive rate, a long's funding entry reduces its balance, while a short's entry increases its balance. Reversing the rate reverses those effects. The sign of an account adjustment therefore needs the position side beside it.
Incentives and price direction
Funding encourages positions that oppose a perpetual premium or discount relative to its reference price. It creates a carrying cost for one side and a payment for the other. A positive rate does not establish the next price move. Falling prices can occur alongside positive funding, and price losses can exceed the funding that a receiving position earns.
Oracle prices and position size determine the payment
Position size and the reference price determine funding notional, so the amount of margin deposited does not directly determine the payment.
Oracle-price notional
For ordinary perpetuals, the payment magnitude equals absolute position size multiplied by the oracle price and the absolute settled hourly rate. Position size means underlying-asset quantity. Convert a percentage rate to a decimal fraction before multiplication. Using a mark-price position value can produce a different amount because the mark and oracle prices serve different purposes. USDC-margined crypto contracts settle these adjustments in USDC. Some oracle quotes use USDT, and those contracts apply no USDC/USDT exchange-rate conversion. Quote denomination and settlement token remain distinct.
Leverage and margin pressure
Holding the same position size while changing leverage does not multiply the funding payment again. Leverage changes the margin required to support that exposure. A larger position supported by the same collateral makes a funding debit larger relative to that collateral. Cross margin shares eligible collateral across positions; isolated margin assigns collateral to the individual position.
Funding debits consume balance that supports open exposure. Liquidation depends on equity relative to maintenance margin, with the mark price governing position valuation. A funding credit can improve that balance while an adverse price move still pushes the position toward liquidation. A funding cap limits the charge for its interval, not the position's total possible trading loss.
How does an eight-hour calculation become an hourly payment?
The ordinary funding formula uses an eight-hour basis, while the hourly rate is one eighth of that calculated rate, subject to the hourly funding cap. Hyperliquid settles funding payments every hour. Receiving funding requires an open position on the receiving side when the interval settles; a forecast alone creates no account credit.
To confirm a funding receipt, begin with a read-only request for the account's funding history. It avoids adding exposure solely to test a payment.
| Calculation stage | What the protocol determines | Timing or applicable condition |
|---|---|---|
| Impact-price inputs | Average bid-side and ask-side execution prices for the contract's impact notional | During premium sampling |
| Premium samples | Deviation from the reference price using the applicable contract formula | Repeated within the hour |
| Average premium | The mean of premium samples for the interval | One-hour averaging window |
| Rate calculation | The sum of average premium and bounded interest correction, scaled by any applicable funding multiplier | The selected contract's configuration applies |
| Hourly conversion | The calculated rate expressed on the hourly settlement basis | One eighth of the eight-hour-basis calculation, subject to the hourly funding cap |
| Payment posting | The hourly rate applied to oracle-priced position size adjusts the balance | Position size at settlement |
The resulting entry identifies the contract and settlement time, alongside the position size, rate and balance adjustment. A positive adjustment confirms receipt for that event.
Unified and portfolio-margin accounts use the spot-balance view for their combined trading balance; standard accounts retain separate perpetual balance reporting. The balance view must match the account mode.
Premium inputs determine how the next rate changes
Order-book impact prices and the contract's reference price determine the premium input that drives rate changes. An impact bid or ask represents an average execution price for the market's specified impact notional. This makes depth relevant: the last trade alone does not reproduce the input. The ordinary calculation averages premium samples over the hour, so a late price move need not describe the entire averaging window.
An interest component adjusts the average premium within a bounded correction. When the required correction fits inside that bound, the formula returns the interest component. A small discount can therefore coexist with positive funding. Beyond the bound, the premium increasingly determines the rate. Annualizing the latest hourly rate extends one observation across a year; it does not establish the rates that future intervals will settle.
Different contract configurations change the funding model
HIP-3 builder markets
HIP-3 deployers can configure the interest component, funding multiplier and clamp for each market. The multiplier scales the funding rate; the clamp bounds the correction toward the interest component. Copying another market's parameters can misstate funding costs. The selected market's asset context exposes its funding rate and oracle price; exchange metadata exposes its funding multiplier. HIP-3 also uses a premium formula based on the midpoint of its impact bid and ask prices relative to its oracle.
Hyperps reference prices
A Hyperp uses a moving average of its own mark prices as the funding reference, replacing an external spot or index oracle. That changes what its premium measures. Hyperps also modify the premium-sample calculation, so substituting that moving average into the ordinary formula alone does not reproduce their funding. Contract type must remain attached to the rate when comparing funding histories across instruments.
Can received funding offset the risks of a hedged position?
Received funding can offset some holding costs, but a hedge still carries execution costs, basis risk and liquidation risk on its perpetual leg.
Matching a spot holding with opposite perpetual exposure can reduce sensitivity to the underlying price. The basis, or difference between spot and perpetual prices, can still change. Opening and closing trades incur their own fees and can execute at different prices. Trading-fee tiers govern those execution charges; they do not determine the market's funding rate. A funding-rate reversal can turn the receiving leg into the paying leg. Collateral outside the position's supported margin arrangement does not automatically protect it from liquidation. A spot holding alone has no perpetual funding settlement, while a spot-perpetual hedge adds a separate cash-flow stream and a position that needs margin.
Helpful answers about Hyperliquid funding rates
Does Hyperliquid charge a commission on funding payments?
Hyperliquid charges no additional fee on the funding transfer itself. Funding moves between opposing perpetual positions. Executed trades follow a separate trading-fee schedule, so receiving funding does not make opening or closing a position free.
Will an unfilled order receive or pay funding?
An entirely unfilled order creates no position exposure for funding. Funding applies to the position held at settlement. If an order fills partially, its executed portion can create an open position that qualifies for funding, even though the remainder stays unfilled.
Does closing a position reverse funding that has already settled?
Closing a position does not undo funding that settled while it was open. A position fully closed before the next settlement has no size for that later payment. Partial closure leaves the remaining position exposed to funding. A closing order counts only once its fills reduce the position.
Is my Hyperliquid funding payment history public?
Account funding history is available through public information queries by address. These queries expose the contract, timestamp and payment data for the requested period. They require no trading signature and do not authorize position changes. A wallet address therefore identifies records that others can inspect.
Which API query separates historical market rates from my payments?
The fundingHistory query returns historical rates for a selected contract, while userFunding returns funding entries for an account. A market history identifies the recorded rate; an account entry records the resulting balance adjustment. A predicted rate belongs to a forecast and cannot establish that an account received a payment.
Are predicted funding rates available for every Hyperliquid perpetual market?
The predictedFundings API query supports only Hyperliquid's first perpetual exchange. This restriction concerns that prediction query, not funding itself. Builder-deployed markets expose funding through asset context and historical data. A missing prediction response therefore does not establish that a market has no funding payments.