Funding
The hourly payment between longs and shorts that keeps a perp near the real price, and what it costs you.
Key ideas
- 1On Hyperliquid, funding is paid every hour on every open position, between longs and shorts.
- 2A positive rate means longs pay shorts. A negative rate means shorts pay longs.
- 3The payment is your position’s value times the hourly rate. It is not charged on your margin.
- 4Small hourly rates add up over days. Check the rate before you plan to hold for long.
How it works
A perp has no end date, so something has to keep its price close to the coin’s. That is funding: each hour, one side pays the other, on the position’s value.
- The perp trades above the coin’s price
- Longs pay shorts
- Being long costs more, so the price is pulled down
- The perp trades below the coin’s price
- Shorts pay longs
- Being short costs more, so the price is pulled up
With today’s rate
- Each hour
- −$0.13
- Each day
- −$3.00
- Over 30 days
- −$90.00
- As a yearly rate
- +11.0%
With a positive rate, longs pay shorts. A short of the same size would receive these amounts.
Over days and weeks
Rates change every hour; this assumes the rate stays where you set it.
- You pay each hour
- $0.13
- Over 7 days
- −$21.00
- As a yearly rate
- +11.0%
- Of a 10x margin
- −2.10%
- Margin $1,000
The rate is positive, so longs pay shorts. Held for 7 days, this position pays $21.00 in funding, whatever the price does.
When it matters
For a trade held for hours, funding is usually small. For one held for weeks, or at high leverage, it adds up: 0.01% an hour is about 88% a year on the position’s value. The markets list shows each market’s current hourly rate and its yearly equivalent.
Common mistakes
- Ignoring funding on positions held for weeks. 0.01% an hour is about 88% a year on the position’s value.
- Opening only to collect funding. The price can move against you far more than funding pays.
- Thinking Lance charges funding. It goes between traders; Lance takes none of it.
Check yourself
Funding on ETH is +0.0013% an hour and you are long $10,000. What happens at the next payment?
Try it in Lance
The markets list shows each market’s hourly funding rate and what it would be over a year.
Check live funding