MAINNEAT

How does perpetual funding work?

Understand funding direction and why holding a perpetual has costs beyond execution fees.

By Mainneat / Reviewed / Independent documentation

What is funding?

A periodic transfer between the long and short sides of a perpetual market. It helps align the contract with its reference price. It is separate from the fee charged when an order executes.

Who pays when funding is positive?

Under the usual sign convention, longs pay shorts when funding is positive; shorts pay longs when it is negative. Check the applicable market rate rather than inferring funding from a green or red tape.

How often does Hyperliquid funding settle?

Hyperliquid documents hourly funding payments. A rate quoted for a different interval must be normalized before comparison. An annualized rate is an extrapolation, not a promise that today’s rate will persist.

Does a busy buy tape tell me the funding rate?

No. The tape records executions. Funding uses its own pricing inputs and calculation. A short burst of buys does not substitute for the actual funding data.

Is funding included in the displayed trade size?

No. Trade size is price multiplied by quantity before fees. Funding is a separate account cash flow. It should not be deducted from or added to every execution as if it were a trade fee.

Sources and methodology

Protocol details refer to the official sources below. Terminal behavior describes this site's implementation and its stated coverage limits. Examples are illustrative.

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