Hyperliquid Funding Payment Formula, Step by Step

For each hourly payment: funding payment = position size × oracle price × funding rate. Position size is in base units, so multiplying by oracle price gives notional. A long pays and a short receives when the rate is positive; the directions reverse when it is negative.

The rate has two parts. The premium component tracks the gap between the perp price and the spot oracle price, sampled and averaged over the period. The interest-rate component is fixed at 0.01% per eight hours, which is 0.00125% per hour.

A perp trading above the oracle gives a positive premium and pushes longs to pay. A perp below the oracle does the reverse.

The rate is computed for an eight-hour window, and one-eighth of it is applied every hour. Payments flow between traders, not to the venue.

A long of 2 BTC with an oracle price of $60,000 has $120,000 of notional. At a funding rate of 0.0012% for the hour, the payment is $120,000 × 0.000012 = $1.44. That is $34.56 over a full day if the rate held, which it usually will not.

The per-hour rate is capped at 4%. Real funding rarely approaches the cap, but it bounds the worst case for an hour. A tool that annualizes a single hourly print is describing pace, not what you will pay.

Say you are short 50 ETH with an oracle price of $3,000, so notional is $150,000. If funding is 0.0010% for the hour, the payment is $150,000 × 0.00001 = $1.50, received by the short because the rate is positive.

Over 24 hours at the same rate that is $36. If the rate falls to zero or turns negative, the income stops or reverses, so model a range instead of one figure.

Check which rate your tool displays, confirm the units, and use the oracle price when recomputing a payment.

• Using the mark price instead of the oracle price for notional.
• Reading an eight-hour rate as an hourly payment.
• Annualizing one hourly print and treating it as a forecast.