How often is funding paid on Hyperliquid?

Every hour. The formula produces an 8-hour rate, and Hyperliquid pays one eighth of it each hour, so a position held for a day sees 24 funding payments.

What is the normal funding rate on Hyperliquid?

When a perp trades in line with its oracle, funding settles at the fixed interest component: 0.01% per 8 hours, which is 0.00125% per hour or roughly 11% a year, paid by longs to shorts. BTC, ETH and HYPE were all at exactly that rate on 4 November 2026.

Does Hyperliquid take a cut of funding?

No. The docs describe funding as purely peer to peer: longs and shorts pay each other and no fee is collected on the payments.

Should I use cross or isolated margin?

Cross shares your whole perps balance across positions, which is capital-efficient but means one bad trade can take the account. Isolated caps the risk at the margin you assign to that one position. Beginners trading one position at a time often find isolated easier to reason about.

Is funding calculated on my margin or my position size?

On the full position: payment = position size x oracle price x funding rate. A 10x position pays ten times the funding of an unleveraged one with the same margin.

Hyperliquid Funding Rates and Margin Explained (2026)

A perp never expires, so something has to stop its price drifting away from the real asset. That something is funding: a small payment that flows between longs and shorts every hour. Next to it sits margin, the collateral that decides how big a position you can open and when it gets closed. This page covers both, because together they determine what a position costs and how long it survives.

Funding in one paragraph

If more people want to be long than short, the perp trades above the real price. Funding then makes longs pay shorts, which makes being long more expensive and being short more attractive, until the gap closes. When the perp trades below the real price, it runs the other way. Think of it as a rent that the crowded side pays to the other side.

How Hyperliquid calculates it

From the funding docs:

Two parts. A fixed interest rate of 0.01% per 8 hours (0.00125% per hour), plus a premium that measures how far the perp trades from the oracle.
The formula. Funding rate = average premium + clamp(interest rate − premium, −0.05%, +0.05%). The clamp means that when the premium is small, funding snaps to the interest rate.
The premium compares the price you’d get filling a set order size on each side of the book (the “impact price”: $20,000 for BTC and ETH, $6,000 for other assets) with the oracle price. It is sampled every 5 seconds and averaged over the hour.
The oracle price is a stake-weighted median of prices submitted by validators, each a weighted median of spot prices on Binance, OKX, Bybit, Kraken, KuCoin, Gate, MEXC and Hyperliquid itself. It updates about every 3 seconds.
Paid hourly at one eighth of the 8-hour rate.
Capped at 0.5% per hour, for every asset.
Payment = position size x oracle price x funding rate. Note that it uses the oracle price, not the mark price.

Builder-deployed (HIP-3) markets use a more responsive premium formula and let the deployer set a funding multiplier and interest rate, so their funding can behave differently. See HIP-3.

Worked example: what funding costs

Say you hold a 1 BTC long and BTC’s oracle price is $78,250 (close to its level on 4 November 2026).

Funding rate (per hour)	Your payment per hour	Per day	Per year, if it stayed there
0.00125% (baseline)	$0.98	$23.48	~$8,570 (~11%)
0.005% (a busy long-side market)	$3.91	$93.90	~$34,300 (~44%)
−0.00125% (shorts paying)	you receive $0.98	you receive $23.48	—

At 10x leverage that baseline year of funding is about 110% of the $7,825 margin backing the position. Leverage multiplies funding just as it multiplies price moves.

Margin: how much collateral, and when it runs out

From the margining docs:

Term	Plain meaning	Hyperliquid rule
Initial margin	Collateral needed to open	Position size x mark price / leverage you set
Maintenance margin	Collateral that must stay, or you get liquidated	Half the initial margin at the market’s maximum leverage: 1.25% of position value on a 40x market, ~16.7% on a 3x market
Withdrawable margin	What you can take out while positions are open	Must leave at least max(initial margin, 10% of total position value)
Cross margin	One pool backing all cross positions	Default. Unrealized profit can fund new positions
Isolated margin	A ring-fenced amount for one position	Losses stay inside that position; margin can be added or removed
Strict isolated	Isolated, but margin can’t be removed	Used on some markets

You can set leverage to any whole number from 1 up to the market’s maximum. Leverage is only checked when you open; after that, it’s on you to watch the position.

Worked example: cross vs isolated

You deposit $10,000 and go long 1 BTC at $78,250 with 10x leverage. BTC’s maximum is 40x, so maintenance margin is 1.25% of the position: about $978.

Isolated: $7,825 is assigned to the position. The docs’ liquidation formula gives a liquidation price of roughly $71,200, about 9% below entry. The other $2,175 in your account is untouched if it hits.

Cross: the whole $10,000 backs the position. The liquidation price is roughly $69,000, about 12% below entry. But if it hits, the liquidation can take the cross balance, not just $7,825.

Two things surprise people here. In cross margin, your leverage setting doesn’t change the liquidation price; a lower setting just reserves more of your balance. And the estimates move over time, because funding payments and other cross positions change your account value. Fees are ignored in these figures. See liquidation for what happens at that price.

Why it matters to you

Funding is the hidden cost of holding. Fees are paid once; funding is paid every hour. On a leveraged long held for weeks, funding can cost more than trading fees. Check current rates on our funding data before you open.
Sometimes funding pays you. If you’re on the less crowded side, you collect it. Some traders hold a spot coin and short the perp to earn funding (the “carry trade”; see portfolio margin).
Pick the margin mode on purpose. Isolated caps your loss on one idea; cross keeps you alive longer but puts the whole balance on the line.
Size relative to the account matters more than the leverage number.

What can go wrong

Funding spikes. In a squeeze, funding can run many times the baseline, up to the 0.5% per hour cap. At that cap a 10x position would pay 5% of its margin every hour.
Oracle vs book. Funding uses the oracle price and liquidations use the mark price. Both can differ from the last trade on screen.
Cross contagion. In cross mode, a loss on one position drags down every other cross position’s liquidation price.
Estimates aren’t promises. The liquidation price shown when you open is an estimate; book liquidity, funding and other positions shift it.
Access. Hyperliquid’s terms restrict the United States, Ontario and other jurisdictions.

Next: what happens when you’re liquidated, or start with perpetual futures explained.

Funding rates and margin on Hyperliquid