Hyper liquid Hyper liquid funding rates determine payments between perpetual longs and shorts
Hyper liquid funding rates determine hourly payments by multiplying the applicable rate by a perpetual position’s oracle-price notional. Positive rates mean longs pay shorts; negative rates reverse that direction. Calculate the amount using position quantity, the settlement oracle price, and the hourly rate expressed as a decimal. Collateral alone does not establish the payment. A displayed estimate can change before settlement, and a funding receipt does not establish a profitable trade. The useful distinction is between estimating the next payment, identifying the amount actually booked, and assessing its effect alongside execution costs and changes in position value.
Funding costs depend on position notional and the applicable hourly rate, while leverage changes their size relative to collateral.
Retaining exposure or reducing it before settlement
Keeping a position preserves its market exposure, while an executed reduction lowers the quantity remaining for subsequent funding calculations. Holding preserves exposure to future price gains and losses; reducing the position lowers that exposure.
An unsubmitted order leaves the account unchanged. Once submitted, an order can execute, so cancellation cannot restore quantities already traded. A resting closing order therefore does not establish a smaller funding obligation. Its fills must reduce the position before the relevant settlement. Reduce-only constrains an order to reducing existing exposure, although the instruction does not guarantee execution.
Position notional and collateral measure different things
Notional measures the position’s exposure, whereas collateral supports the account’s margin requirements. Using collateral as the funding calculation base produces an incorrect result whenever it differs from the applicable notional.
Quantity and oracle price
Multiply the absolute position quantity by its settlement oracle price to obtain the funding notional. Quantity must use the contract’s underlying units. Entry price records the trade’s starting valuation; it does not replace the oracle input for a later payment.
Mark price and margin
The mark price supports margin calculations and unrealized profit or loss. It can differ from the oracle price, so a displayed position valuation may differ from the notional funding uses. Keep those price fields distinct when comparing calculations.
How do you calculate the payment from an hourly funding rate?
Multiply position quantity by oracle price and the hourly decimal rate, then apply the payment direction associated with the position’s long or short side.
Let q represent signed quantity, positive for a long and negative for a short. Let O represent oracle price and r the signed hourly decimal rate. The relationship becomes funding cash flow = -q × O × r, with positive cash flow meaning a receipt. This sign convention describes the calculation; individual displays can label payments differently.
Funding payments use oracle price to convert position quantity into notional value. A percentage requires division by 100 before multiplication. A decimal rate requires no further percentage conversion.
Premium sampling precedes hourly settlement
The standard calculation samples the premium during the interval, averages those observations, and applies the resulting funding payment at hourly settlement.
| Calculation stage | Timing |
|---|---|
| Sample the premium | Every 5 seconds |
| Average the premium observations | Over the hour |
| Apply the funding payment | At the hourly interval’s end |
The standard rate formula uses an eight-hour basis, with hourly payments applying one eighth of the computed rate. That convention does not make settlement eight-hourly. An input already expressed as an hourly rate needs no additional division.
Premium and interest determine the rate
The standard funding formula combines the average premium with a bounded adjustment toward its interest component. A premium reading alone therefore does not identify the final funding rate.
Impact bid and ask prices reflect execution across a specified order-book notional. They differ from simply reading the last trade. Changing book liquidity can alter these inputs, even without a matching change in the last traded price.
Leverage changes the burden relative to margin
Increasing leverage while preserving quantity does not itself enlarge the funding notional. It changes the relationship between exposure and the margin supporting it.
Initial margin depends on position size multiplied by mark price and divided by the selected leverage. Consequently, the same payment can represent a larger share of initial margin at higher leverage. This follows from the margin relationship, assuming unchanged quantity and prices.
Increasing quantity creates a different outcome. With oracle price and rate held constant, the payment scales proportionally with the larger position.
Margin mode also determines which collateral supports losses. Cross margin shares eligible collateral, while isolated margin confines support to the position’s allocation. A funding receipt does not prevent liquidation when the applicable account or position fails its maintenance requirement.
Booked funding and estimated funding answer different questions
Historical account entries establish payments already applied, while market estimates describe potential future funding. Comparing them requires the same market, settlement interval, and position quantity.
The userFunding response includes the market, funding rate, signed position size, payment amount, and timestamp. The fundingHistory response provides historical market rates. A market rate alone cannot establish an individual account’s payment.
For reconciliation, calculate each settlement separately and total the signed cash flows. Changing quantities or oracle prices make a single average rate multiplied by the final position unreliable. Deposits, withdrawals, trading fees, and price movements require separate treatment when explaining the account’s overall change.
Builder settings and alternative oracle designs
Contract design determines which rate parameters and oracle inputs apply. A funding calculation copied between markets can fail even when both positions use the same payment relationship.
Builder-deployed perpetuals
HIP-3 markets allow deployers to configure funding multipliers, interest components, and clamps. A builder-deployed market’s funding multiplier scales its funding rate. The applicable settings belong to the selected contract. A generic baseline cannot establish that contract’s payment.
Deployers also define their markets’ oracle arrangements and collateral. Those specifications determine what the quoted reference price represents and which collateral backs the position.
Hyperps
The hyperp design uses a moving average of mark prices in place of an external spot oracle. Applying an unrelated spot quote would therefore substitute the wrong reference. Its funding behavior must follow that contract’s design, including its distinct premium treatment.
Funding receipts and the cost of changing exposure
A funding receipt contributes to the position’s outcome alongside trading fees and price profit or loss. Its sign alone cannot establish whether holding or closing produces a better result.
Trading charges follow their own maker and taker schedules, with account and market conditions affecting the applicable charge. They belong to executions rather than the hourly payment calculation. Closing and reopening can therefore introduce costs absent from a funding-only estimate.
For the next holding interval, the decision concerns the remaining exposure, expected funding, and executable exit cost. Historical receipts establish past cash flow. They do not fix the next rate or compensate automatically for an adverse price move.
Hyper liquid funding rates FAQs
Can I convert an hourly funding rate into an annual return?
An annualized rate is a projection under stated assumptions, not a realized account return. Simple annualization multiplies the hourly rate by the hours in the chosen year. That calculation assumes the rate persists. Actual cash flows also depend on changing notional, position direction, and the settlements the position spans.
Does a maker fee discount reduce my funding payment?
A maker fee discount changes the charge associated with an eligible execution. It does not replace the funding rate used for the position’s hourly payment. Track execution charges and funding separately when calculating holding costs.
Why can two positions with equal quantities have different funding amounts?
Equal quantities do not establish equal funding notionals across different contracts. Oracle prices, applicable rates, and contract units can differ. Even comparisons within one market require matching settlement times. Quantity alone leaves essential multiplication inputs unresolved.
Is a zero funding multiplier the same as a market without trading fees?
A zero funding multiplier and a zero trading charge describe separate settings. The multiplier scales funding, while executions follow the applicable fee rules. Neither setting establishes the other.
Which cumulative funding figure matches the period since a position opened?
Use sinceOpen for cumulative funding since the position opened. The position response also includes allTime and sinceChange for other periods. Comparing an all-time figure with a shorter export can produce an apparent discrepancy.
Are predicted funding rates available for every builder-deployed market?
The predictedFundings query supports the first perpetual DEX rather than every builder-deployed market. Its coverage should not be treated as a complete inventory of funding-bearing contracts. Historical market rates and account payments answer different questions from that prediction response.
What happens to a funding estimate when a builder settles the market?
A builder can halt trading and settle positions at the current mark price. That ends the existing positions, so a projection assuming they continue through later funding intervals no longer describes the account. Previously booked funding remains separate from the position settlement.