Hyperliquid funding rates: how hourly funding works
How Hyperliquid computes and pays funding every hour, why the rate usually sits at 0.00125%, how to annualize it, and how Aster and Lighter differ.
By the Prow teamPublished Updated 6 min read
On this page
- What funding is for
- The formula
- Why the rate is usually exactly the baseline
- A worked payment
- Hourly rate to yearly rate
- How Aster and Lighter differ
- Reading funding as a trader
- Frequently asked questions
- How often is funding paid on Hyperliquid?
- Why does Hyperliquid funding so often show 0.0013%?
- Is Hyperliquid funding charged on my margin or my position?
- What is the maximum funding rate on Hyperliquid?
- How do I compare Aster funding with Hyperliquid funding?
- Sources
Hyperliquid pays funding every hour. Each hour, every open perp position pays or receives one eighth of an 8-hour funding rate, computed from how far the perp traded from the spot oracle price during that hour. When the perp trades close to spot, the rate settles at a baseline of 0.00125% per hour, paid by longs to shorts. The rate is capped at 4% per hour. This guide walks through the formula, a worked payment, how to turn an hourly rate into a yearly one, and how Aster and Lighter compare.
What funding is for
A perpetual future has no expiry date, so nothing forces its price back to the coin's spot price. Funding does that job. When the perp trades above spot, the rate is positive and longs pay shorts, which makes holding a long more expensive and pulls the price down. When the perp trades below spot, the rate turns negative and shorts pay longs.
Funding is peer-to-peer. Hyperliquid takes no cut of it, and neither does an app you trade through.
The formula
Hyperliquid's docs give the 8-hour rate as:
F = P + clamp(I − P, −0.05%, +0.05%)
- P is the average premium: how far the perp's order book trades from the oracle price. Hyperliquid samples it every 5 seconds and averages it over the hour. The premium uses "impact" prices, the average price to fill a set notional on each side of the book, so one stray order does not move it.
- I is the interest rate, fixed at 0.01% per 8 hours.
- clamp limits the correction term to ±0.05%.
Each hour, positions pay F ÷ 8.
Why the rate is usually exactly the baseline
Work through the clamp and something useful falls out. As long as the premium stays within 0.05% of the interest rate (between −0.04% and +0.06%), the clamp returns exactly I − P, and the formula collapses to:
F = P + (I − P) = I = 0.01% per 8 hours
So in a calm market the hourly rate is 0.01% ÷ 8 = 0.00125%, whatever the small premium is. That is why so many Hyperliquid markets show the same rate (about 0.0013% per hour, rounded) most of the time.
The rate only moves off the baseline when the premium leaves that band:
| Average premium P | 8-hour rate F | Hourly rate F ÷ 8 | Who pays |
|---|---|---|---|
| +0.30% | 0.30% − 0.05% = 0.25% | 0.03125% | Longs pay shorts |
| +0.10% | 0.10% − 0.05% = 0.05% | 0.00625% | Longs pay shorts |
| Anywhere from −0.04% to +0.06% | 0.01% | 0.00125% | Longs pay shorts |
| −0.10% | −0.10% + 0.05% = −0.05% | −0.00625% | Shorts pay longs |
| −0.30% | −0.30% + 0.05% = −0.25% | −0.03125% | Shorts pay longs |
The hourly rate can never go past ±4%. That cap is far looser than most centralized exchanges, so in a squeeze Hyperliquid funding can get very large.
A worked payment
The payment at the end of each hour is:
payment = position size × oracle price × hourly rate
Hyperliquid uses the oracle price for this, not the mark price. Example: you hold a long of 2 ETH, the ETH oracle price is 4,000 USDC, and the hourly rate is the baseline 0.00125%.
- Position value: 2 × 4,000 = 8,000 USDC
- One hour: 8,000 × 0.0000125 = 0.10 USDC paid (you are long and the rate is positive)
- One day: 24 × 0.10 = 2.40 USDC
- One year at the same rate: 876 USDC, about 10.95% of the position value
Funding is charged on the position value, not your margin. If that 8,000 USDC long uses 800 USDC of margin (10x), the same 2.40 USDC a day is 0.3% of your margin every day. Leverage multiplies funding just like it multiplies price moves.
Hourly rate to yearly rate
To compare funding with a yearly yield, scale the hourly rate:
APR = hourly rate × 24 × 365
At the baseline, 0.00125% × 8,760 = 10.95% a year. Hyperliquid's docs quote the same baseline as "11.6% APR". The difference is compounding: if each hourly payment were reinvested, 0.00125% an hour grows to about 11.6% over a year. Prow uses the simple product (hourly × 24 × 365) everywhere, so a number on Prow is the non-compounded one.
The live funding rates page shows every coin's current rate both ways, and each coin's page (for example BTC) adds 7- and 30-day averages. A yearly figure is a pace, not a promise. Funding changes every hour, and a rate that is high today is usually much lower within days.
How Aster and Lighter differ
| Hyperliquid | Aster | Lighter | |
|---|---|---|---|
| Payment interval | 1 hour | 8 hours by default; some markets 4 h or 1 h | 1 hour |
| Formula | 8-hour rate, paid ÷ 8 each hour | 8-hour rate scaled to the interval: F ÷ (8 ÷ N) | Hourly payments from the gap between the perp and the index price |
| Interest rate term | 0.01% per 8 h | 0.01% per 8 h (0% on BNBUSDT) | See Lighter's docs |
| Cap | 4% per hour | Set per market; Aster can change it in extreme moves | See Lighter's docs |
Aster's formula has the same shape as Hyperliquid's, including the ±0.05% clamp, but the result is divided by 8 ÷ N, where N is the market's interval in hours. On an 8-hour market you pay the full rate three times a day. On a 4-hour market you pay half the rate six times a day. Aster also notes that funding can be charged up to 15 seconds around the funding time, so a position opened a few seconds after the hour may still pay that interval.
To compare venues, always bring rates to the same unit. An Aster rate of 0.01% per 8 hours equals Hyperliquid's 0.00125% per hour. Prow shows every venue's rate per hour ("Funding 1h") for exactly this reason. See Perps basics: funding.
Reading funding as a trader
- High positive funding means longs are crowded and paying to stay in. It is a cost to hold a long, and income for a short. It says nothing reliable about where the price goes next.
- Funding is not locked in. The rate shown during the hour is an estimate of the coming payment, built from the premium so far. It is fixed only when the hour ends.
- Funding adds up on long holds. At the baseline, a 1x long pays about 0.9% of its value a month. With leverage, divide your margin by the leverage to see how fast it eats in.
- Different venues, different rates. The same coin often has different funding on Hyperliquid, Aster and Lighter. That gap is what funding rate arbitrage tries to collect, and its costs usually eat most of it. How crypto arbitrage bots work shows the break-even math.
- Funding can be collected on one venue. Holding the coin on spot and shorting its perp is the cash and carry trade. That guide counts the fees and the capital the trade ties up.
In Prow, the market info shows the current rate and a countdown to the next Hyperliquid payment, the Positions table shows the funding a Hyperliquid position has paid or received since it opened, and Activity lists every funding payment. See Activity: funding.
Frequently asked questions
How often is funding paid on Hyperliquid?
Every hour. Hyperliquid computes an 8-hour funding rate and charges one eighth of it at the end of each hour.
Why does Hyperliquid funding so often show 0.0013%?
Because of the clamp in the formula. While the perp's premium stays within 0.05% of the 0.01% interest rate, the 8-hour rate equals the interest rate, 0.01%, which is 0.00125% per hour. Rounded, that shows as 0.0013%.
Is Hyperliquid funding charged on my margin or my position?
On the position. The payment is position size × oracle price × hourly rate. With 10x leverage, funding is ten times larger as a share of your margin.
What is the maximum funding rate on Hyperliquid?
4% per hour, in either direction. The cap is the same for every asset.
How do I compare Aster funding with Hyperliquid funding?
Convert both to a per-hour rate. Divide Aster's rate by its market's interval in hours (8, 4 or 1). Hyperliquid's displayed rate is already per hour.
Sources
Checked October 5, 2026:
- Hyperliquid docs: Funding
- Aster docs: Funding rate
- Prow docs: Perps basics, Glossary