Hyperliquid
Hyperliquid funding rates, premium calculations, and account payments
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Hyperliquid funding rates determine hourly payments between perpetual longs and shorts. Positive rates make longs pay shorts; negative rates reverse that direction. Premium calculations influence the rate, while position size and oracle price determine the payment. Builder-deployed markets can use different funding settings.
Funding costs follow the position’s notional value, while market configuration determines how premiums translate into the applicable rate.
Holding, reducing, or closing perpetual exposure
Keeping a position open preserves its price exposure and funding obligations. Reducing or closing it changes the quantity that remains exposed. An unfilled exit order leaves the existing position unchanged.
| Position choice | Funding effect | Condition that matters |
|---|---|---|
| Hold a long | Pays positive funding; receives negative funding | Long exposure remains open |
| Hold a short | Receives positive funding; pays negative funding | Short exposure remains open |
| Reduce a position | Reduces the quantity subject to subsequent funding | Execution must reduce the position |
| Close a position | Ends subsequent funding on that position | No position remains after execution |
| Hold fully paid spot assets | Creates no perpetual funding payment | Spot ownership does not include a separate perpetual position |
A limit order requires execution at its limit or better. Its presence in the order book does not establish that a funding-bearing position has closed. Execution charges also remain separate from holding costs.
Oracle, impact, and mark prices have different jobs
The oracle supplies the reference price, while the mark price supports margin calculations, liquidation checks, and unrealized profit or loss.
Impact prices describe order-book depth
Impact bid and ask prices represent average execution prices for the contract’s specified impact notional. They measure depth beyond the best displayed quote.
The mark price measures position value
Hyperliquid combines market inputs to construct its mark price. A chart’s last trade, the oracle, and the mark can therefore differ. That distinction matters when comparing a funding calculation with a liquidation estimate: the calculations use different price inputs.
The premium adjustment in the standard formula
The standard calculation combines the average premium P with an interest component i and a bounded adjustment: F = P + clamp(i - P, -c, c). The clamp restricts i - P to the range from -c to c. It does not cap the entire funding rate. The standard premium calculation subtracts any impact-ask shortfall below the oracle from any impact-bid excess above it, then divides by the oracle price. P averages these samples over the hour.
Hourly settlement and annualized displays
The standard formula expresses an eight-hour rate, with hourly settlement applying one eighth of the calculated rate.
An annualized display extends a short-period rate across a year. It describes a mathematical projection, not a payment schedule or a fixed return. Future intervals can have different rates, and changing position values alter the amounts exchanged.
Comparisons require the same time basis. An hourly percentage and an annualized percentage cannot meaningfully be compared without conversion. Simple annualization also differs from a compounded calculation, which assumes reinvestment. Neither calculation establishes that a funding receipt can earn the same return repeatedly.
How much funding does a position pay?
The payment magnitude equals the absolute position quantity multiplied by oracle price and the absolute hourly funding rate expressed as a decimal. Position direction and rate sign determine whether that amount enters or leaves the account.
Leverage changes the relationship between exposure and committed margin. Holding the same quantity with less margin increases the payment’s size relative to that margin. Changing leverage without changing quantity does not itself shrink the exposure used in the calculation.
Builder-deployed markets have configurable funding
Builder-deployed perpetual markets under HIP-3 allow funding behavior to vary by asset. HIP-3 also uses a different premium calculation: the midpoint of the impact bid and ask prices divided by the oracle price, minus one.
Interest and clamp settings
Deployers can configure the interest component and the clamp that bounds the adjustment toward it. A calculator that hard-codes the standard market settings can therefore produce an incorrect result for another contract.
Funding multipliers
HIP-3 deployers can configure an asset’s funding multiplier to scale its funding rate. The multiplier affects the rate calculation rather than the trader’s position quantity. These parameters belong to the market configuration; they are not preferences that an individual trader selects.
Hyperps use a different reference
Hyperps replace the usual external spot reference with a moving average of their own mark prices. This derivative design supports a period before the underlying asset or index provides the usual settlement or conversion reference.
The moving reference creates a different relationship between recent price momentum and funding. A sharp move can leave the current market price far from that reference. Treating a hyperp as an ordinary spot-referenced perpetual would miss this distinction. Its specific calculation also modifies the usual funding formula, so the standard formula alone does not describe the whole mechanism.
Funding changes the margin available to a position
Funding payments can change a position’s liquidation boundary because they affect the collateral available to absorb losses. A liquidation estimate does not remain fixed throughout a position’s lifetime.
Receiving funding does not prevent liquidation. Adverse price movement can outweigh the receipt and reduce equity below maintenance requirements. The mark price governs liquidation calculations, which explains why a favorable funding sign cannot establish a safe liquidation distance.
Cross margin shares collateral across eligible positions. Isolated margin confines the calculation to the position’s allocated margin and exposure. The applicable sharing boundaries also depend on the account mode and, across builder-deployed markets, the collateral configuration.
A funding receipt and a profitable position are different outcomes.
Market history and account payments answer different questions
Historical market rates describe the contract, while personal funding records describe payments involving a particular account. Neither dataset substitutes for the other.
The API exposes market history through fundingHistory and account payments through userFunding. Account entries include the market, position size, funding rate, payment amount, and timestamp. Those fields connect a market’s settled rate with the account’s actual exposure.
Missing funding records
A missing payment record requires a check of the queried account, market identifier, and time window before concluding that settlement failed.
Funding-history requests use timestamps in milliseconds. A request covering the wrong interval can omit the entry being investigated. Market-rate history also cannot prove that a particular account held a position at settlement. Repeat the account-history query with the corrected scope, then compare the returned entry with the relevant position records.
Before continuing to hold, check whether the applicable funding configuration, open quantity, and margin available after posted payments fit your intended holding period. A previous receipt alone does not establish the cost of continuing to hold.
Hyperliquid funding rates - common questions
Does positive funding predict that the market price will rise?
Positive funding does not establish the direction of the next price move. It describes a payment obligation under the contract’s funding mechanism. Traders still face price exposure, and the relationship between a premium and future returns is not a guarantee.
Can Hyperliquid keep part of a funding payment as a fee?
Hyperliquid describes funding as transfers between position holders without collecting a fee on those payments. Trading fees apply separately to execution.
Why can a funding prediction be unavailable for a builder-deployed market?
The predictedFundings API query supports the first perpetual DEX rather than every builder-deployed DEX. An absent prediction therefore does not establish that funding is zero. The selected market’s configuration and historical funding records answer different questions from prediction availability.
Is there a difference between a funding clamp and a funding cap?
A funding clamp bounds one adjustment within the formula, while a funding cap limits the resulting rate. Confusing them can understate the range of possible payments. Builder-deployed markets can configure their clamp, so a standard clamp value should not be assumed across contracts.
Will adding isolated margin reduce my position quantity?
Adding isolated margin increases the collateral allocated to the position without reducing its quantity. It changes the margin available to support the exposure. Reducing the position requires an executed trade that decreases that exposure.