At a positive rate, longs pay shorts (a holding cost for longs, income for shorts); at a negative rate, shorts pay longs. Estimates assume the rate holds constant — real funding changes every interval. Educational, not financial advice.
How funding works
Funding is the mechanism that keeps a perpetual tethered to spot. Each interval, one side pays the other in proportion to position size, nudging the crowded side to close. A persistently high rate is both a real cost and a crowding signal — read the full explainer on funding rates, or scan funding across 300+ Hyperliquid markets on the live map.
FAQ
How is a funding payment calculated?
A funding payment is your position’s notional value multiplied by the funding rate for that interval. On a $10,000 position at a 0.01% rate, you pay or receive $1 that interval. It is exchanged between longs and shorts, not paid to the exchange.
Who pays funding — longs or shorts?
When the funding rate is positive (the perpetual trades above spot), longs pay shorts. When it is negative, shorts pay longs. Funding nudges the crowded side to close, keeping the perpetual tethered to spot.
How often is funding paid?
It varies by venue. Many centralized exchanges settle funding every 8 hours; Hyperliquid settles hourly. More frequent funding means holding across each settlement incurs (or earns) the payment more often.