Funding

Funding is an hourly peer-to-peer payment between long and short positions. It is intended to keep a perpetual market’s traded price near its oracle price. Hyperliquid does not collect a fee on funding payments.

When funding is positive, longs pay shorts. When funding is negative, shorts pay longs. HyperCore applies the payment to each open position at the end of the hourly interval.

Calculation

Hyperliquid defines an eight-hour funding rate and pays one eighth of the computed rate each hour. For HIP-3 markets, the premium is:

P = (0.5 × (impact_bid_px + impact_ask_px) / oracle_px) - 1

where impact_bid_px and impact_ask_px are the average execution prices for the market’s configured impact notional on the bid and ask sides.

Current xyz markets use an impact notional of 1,000 USDC.

The base funding formula is:

F_base = P + clamp(r - P, -0.0005, 0.0005)

Here, P is the hourly average of premium samples and r is the market’s eight-hour funding interest-rate input. Current xyz markets use HyperCore’s standard 0.0001 input, or 0.01% per eight hours, except EUR, GBP, JPY, and KRW, which use 0.

The market’s funding-rate multiplier is then applied. Active xyz markets currently list a multiplier of 0.5 in the Specification Index:

F_xyz = funding_rate_multiplier × F_base

The hourly funding rate is one eighth of F_xyz. Funding is capped by HyperCore at an absolute value of 4% per hour.

The payment is:

funding_payment = position_size × oracle_price × hourly_funding_rate

The oracle price, not the mark price, converts position size to notional. The impact notional, interest-rate input, and multiplier are market parameters and may change. Consult the current Specification Index, Hyperliquid’s Funding documentation, and the current onchain metadata.