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Overview

Funding keeps the perp aligned with the oracle through periodic peer-to-peer transfers. When the perp trades above the oracle, longs pay shorts; when it trades below, shorts pay longs. Funding is paid hourly on the mark/index spread and settles to each position holder’s margin balance every hour.

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Technical Details

The funding rate combines the average premium of the perp relative to the oracle with a clamped interest component, under standard Hyperliquid perpetual mechanics — see Hyperliquid’s documentation for the full formula. Funding accrues on position notional and is exchanged between longs and shorts: payment=position size×oracle price×F\text{payment} = \text{position size} \times \text{oracle price} \times F

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Off-Hours Funding

Funding continues hourly in every oracle regime — active, stale hold, bounded discovery, and holiday hold. When the external assessment is dark, the premium term is the economic tether between the order book and the published oracle: as the perp mark drifts from the discovery reference, the premium widens and funding flows from the rich side to the cheap side. The discovery band caps the published oracle, and therefore the funding reference. On reopen, any remaining dislocation converges through normal trading and funding.