Hyperliquid funding rates explained

Perpetual futures never expire, so something has to keep their price close to the coin's real (spot) price. That something is funding: regular payments between longs and shorts.

How funding works on Hyperliquid

• Paid every hour. The rate is quoted on an 8-hour basis, and each hour one eighth of it is paid.
• Positive funding: longs pay shorts. It happens when the perp trades above spot, usually when most traders are long.
• Negative funding: shorts pay longs, when the perp trades below spot.
• The rate is the average premium of the perp over the oracle price during the hour, plus a small fixed interest part (0.01% per 8 hours), clamped near that interest rate. It is capped at 4% an hour.
• It's charged on your position's value, not your margin, so 10× leverage means funding costs ten times as much of your margin as at 1×.

What it costs

A long of $10,000 at a funding rate of 0.01% an hour pays $1 an hour, $24 a day, and about $720 over a month. On a position held for weeks, funding can matter more than trading fees.

Reading funding as a signal

High positive funding means many traders are paying to stay long: a crowded trade. It can keep rising in a strong market, so it isn't a timing signal on its own. JoinEm's market pages show how ranked traders are positioned in each coin, which tells you whether traders with a record are on the crowded side.

On JoinEm

Every P&L figure on JoinEm is after fees and funding, taken from Hyperliquid's own account history. A trader whose closed trades look profitable but who pays heavy funding shows the lower, real number. How we measure.