Funding

Notional funding is the same Hyperliquid perp funding payment applied to open positions. It is separate from Notional borrow interest. Funding is peer-to-peer between long and short perp traders. No protocol or exchange fee is collected on funding payments. When the perp trades above the spot oracle, funding is typically positive and longs pay shorts. When the perp trades below the spot oracle, funding is typically negative and shorts pay longs. Hyperliquid pays funding every hour by adding or subtracting the payment from each contract holder’s balance. The rate is designed to keep the perpetual contract price close to the underlying spot oracle price. Hyperliquid computes an 8-hour funding rate: $$F_{8h} = \bar{P} + \operatorname{clamp}(I - \bar{P}, -0.0005, 0.0005)$$ where $I = 0.0001$ and $\bar{P}$ is the average premium index over the hour. Premium samples are taken every 5 seconds: $$P = \frac{\max(b_{\text{impact}} - O, 0) - \max(O - a_{\text{impact}}, 0)}{O}$$ where $O$ is the oracle price, $b_{\text{impact}}$ is the impact bid price, and $a_{\text{impact}}$ is the impact ask price. Hyperliquid computes oracle prices from validator weighted medians of centralized-exchange spot prices. The impact bid and ask prices are the average execution prices for trading the market’s configured impact notional on each side of the book. The fixed interest component is 0.01% per 8 hours, or 0.00125% per hour. Hyperliquid describes this as representing the difference between borrowing USD and borrowing spot crypto. Funding is paid every hour at one eighth of the computed 8-hour rate, capped at 4% per hour: $$\text{payment} = \text{position size} \times O \times F_{1h}$$ The cap and hourly interval are the same across assets. The payment uses the spot oracle price to convert position size into notional value, not the mark price. Notional allocates each funding payment from the exchange across user accounts by their position exposure in the funded market. Traders see the resulting debit or credit in their account history.