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.

Premium Index

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.

Base Funding Rate and Clamp

The base funding formula is:

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

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.

c is the market’s configured eight-hour funding clamp. It bounds the adjustment from the average premium P toward the interest-rate input r, before applying the funding multiplier and dividing by eight for hourly payments.

HIP-3 deployers can set c per asset through setFundingClamps, with an allowed range of 0 to 0.01. Hyperliquid documents a default of 0.0003, equivalent to a 0.03% adjustment in the eight-hour formula. An asset’s configured clamp can differ from that default. HIP-3 deployer actions

Funding Multiplier

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

Hourly Rate and Payment

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, funding clamp, and multiplier are market parameters and may change. Consult the current Specification Index, Hyperliquid’s Funding documentation, and the current onchain metadata.