How Hyperliquid funding works
Funding is a payment between traders, not a fee to the exchange. It keeps the perpetual price close to the spot oracle price: when the perp trades above spot, longs pay shorts, and when it trades below, shorts pay longs.
Hyperliquid computes the rate from a premium (how far the perp is from the oracle) plus a fixed interest component of 0.01% per 8 hours, which is 0.00125% per hour or about 11.6% a year paid by longs when the market is flat. The rate is capped at 4% per hour.
Payments happen every hour: position size × oracle price × hourly rate. On a $10,000 long at 0.0013% per hour you pay about $0.13 an hour, or roughly $3 a day.
Binance and Bybit usually settle every 8 hours, so their raw rates look 8 times larger. Converted to the same hourly basis, the gap shows where perps are more crowded. A large gap can attract arbitrage, but rates change every hour and moving funds between venues has costs and risks.
FAQ
How often does Hyperliquid pay funding?
Every hour, at the top of the hour. Most centralized exchanges pay every 8 hours, so compare rates on the same time basis.
What does a negative funding rate mean on Hyperliquid?
Shorts pay longs. It usually means more traders are short than the spot price justifies, so the perp trades below the oracle price.
What is the maximum funding rate on Hyperliquid?
Funding is capped at 4% per hour, according to the Hyperliquid docs. Normal rates are far smaller, often around 0.001% per hour.
Why is Hyperliquid funding different from Binance?
Each venue has its own traders, order book and formula. Hyperliquid also settles hourly, so its rate reacts faster. That is why the same coin can show positive funding on one venue and negative on another.
How do I calculate my funding cost?
Multiply your position value by the hourly rate and the hours held. The free funding calculator on this site fills in the live rate for you.
Sources: Hyperliquid docs: Funding · Hyperliquid API: info endpoint. Information on Whale Radar is for reference only and is not investment advice. Leveraged derivatives trading can cost you your entire capital.