Funding breakdown
| Metric | Value |
|---|
How Hyperliquid's funding formula actually works
Hyperliquid computes a Premium Index (P) from the mid of the impact bid/ask against the oracle price — P = ((Impact Bid + Impact Ask)/2 − Oracle) / Oracle — sampled repeatedly and averaged across the hour. On top of that sits a small fixed Interest Rate Component meant to reflect the baseline cost-of-carry difference between the two legs of a perp.
The final hourly rate is F = P + clamp(Interest − P, −0.05%, 0.05%). In plain terms: the interest term is only allowed to nudge the rate up to 0.05 percentage points away from what the live order book premium already says. If the book's premium and the fixed interest constant roughly agree, the clamp never engages and F ≈ Interest. If they disagree sharply, the clamp caps the correction and F stays anchored close to the observed premium P.
Unlike Binance, Bybit or OKX — which settle funding once every 8 hours — Hyperliquid settles every single hour. And unlike dYdX v4, which derives its clamp band from each market's own margin parameters, Hyperliquid additionally enforces a hard per-hour ceiling on top of the interest-premium clamp, so no single hour's payment (even during an extreme oracle dislocation) can exceed that configured ceiling. This calculator lets you toggle both bounds independently and see which one — if either — is binding.
FAQ
How does Hyperliquid calculate its funding rate?
Hyperliquid samples a Premium Index every few seconds from the mid of the impact bid/ask versus the oracle price, then averages it across the hour to get P. The hourly Funding Rate is F = P + clamp(Interest Rate − P, −0.05%, 0.05%) — the interest-rate component (a small fixed baseline, default around 0.00125% per hour) is only allowed to pull the rate up to 0.05 percentage points away from the raw premium in either direction before the clamp engages.
Why does Hyperliquid settle funding every hour instead of every 8 hours?
Most CEX-style venues (Binance, Bybit, OKX) settle funding once every 8 hours, even though the rate is still often quoted 'per 8h'. Hyperliquid settles and pays funding every single hour. That means the same annualized rate is charged in smaller, more frequent bites — position holders see cash flow move continuously rather than in three lumpy daily payments, and any single hour's premium spike affects only that hour, not an 8-hour block.
What is the ±0.05% interest-premium clamp for?
The clamp bounds how far the fixed interest-rate component can pull the funding rate away from the actual market-observed premium. clamp(Interest − P, −0.05%, 0.05%) means that even if the baseline interest rate and the live premium disagree wildly, the interest side of the formula can only shift the final rate by at most 0.05 percentage points per hour. This keeps funding anchored to what the order book is actually pricing, rather than to a stale fixed constant.
Is there a hard cap on Hyperliquid funding beyond the clamp?
Yes. On top of the interest-premium clamp, Hyperliquid enforces a hard per-hour funding-rate ceiling (configurable per market, commonly modeled at up to a few percent per hour) so that even a violently dislocated order book cannot produce an unbounded single-hour payment. This calculator lets you set that hard cap explicitly and shows whether it — rather than the interest clamp — is the binding constraint for your inputs.
Who pays whom on a positive vs negative rate?
A positive funding rate means the impact mid sits above the oracle price (perp trading rich, more aggressive longs) — longs pay shorts, once per hour. A negative rate means the perp trades at a discount to oracle — shorts pay longs. The payment is position notional × hourly rate, auto-settled from account equity with no manual claim.
How is this different from the dYdX v4 or Binance-style funding formula?
dYdX v4 clamps its rate to a band derived from each market's own margin parameters (IMF − MMF) and settles hourly using an 8-hour-scaled premium divided by 8. Binance/Bybit-style venues compute a similar premium-plus-interest formula but settle only every 8 hours. Hyperliquid's formula — premium plus an interest term clamped to ±0.05%, settled hourly, with an additional hard per-hour cap — sits structurally between the two: CEX-style premium math, but on-chain hourly cadence with an explicit worst-case ceiling.