# Hyperliquid funding rates: hourly payments explained > How Hyperliquid funding is calculated and paid hourly, how to read positive and negative rates, and how to include carry in trade cost. Canonical HTML: [Hyperliquid funding rates: hourly payments explained](https://hyperliquidreferralcodes.com/funding-rates) Markdown URL: [Hyperliquid funding rates: hourly payments explained as Markdown](https://hyperliquidreferralcodes.com/markdown/funding-rates.md) Reviewed: 11 Aug 2026 (2026-08-11). Bottom line: Funding is exchanged hourly between longs and shorts. Positive funding means longs pay shorts; negative funding means shorts pay longs. Payment equals position size × oracle price × funding rate. ## What the hourly rate means Hyperliquid expresses funding as an 8-hour rate but pays one eighth each hour. The mechanism keeps perpetual prices anchored to the underlying index by transferring value between long and short positions. The exchange does not collect funding as a fee. Positive funding means the long side pays. Negative funding reverses the direction. The live Market Pulse shows the current hourly percentage and a simple annualized estimate, but annualization assumes an unchanged rate and is not a forecast. ## Funding payment formula The official formula multiplies position size in base units by oracle price and the funding rate. The result equals position notional multiplied by the hourly rate. A $100,000 long at +0.001% hourly funding pays about $1 per hour; at −0.001%, the same long receives about $1 per hour. Links: - [Add funding to the Hyperliquid cost calculator](https://hyperliquidreferralcodes.com/calculator): Related resource for this section. Code: ~~~~text payment = position_size × oracle_price × hourly_funding_rate ~~~~ Note: Direction matters. The calculator uses the long perspective: enter a positive rate for a long-side cost and a negative rate for a long-side credit. ## Why funding changes Funding responds to the relationship between the perpetual market and robust external price indices. Crowded directional positioning can produce persistent carry, while rapid dislocations can change the rate between observations. The published methodology includes a fixed interest component and a premium component, with a protocol cap. Do not extrapolate one hour across a week without a sensitivity range; carry often changes fastest when volatility and leverage rise. Key points: - Check the sign before entering. - Model low, base and high-rate cases for long holds. - Use oracle notional for the official payment logic. - Recheck after large price moves or positioning changes. ## Use funding with OI and liquidity Funding alone does not identify a trade. Pair it with open interest, 24-hour notional volume, the mark-oracle relationship and execution depth. Rising OI with expensive positive funding can indicate crowded longs, but it can also accompany a strong trend. Treat the rate as a carrying-cost input and a positioning clue, not a deterministic signal. The Market Pulse keeps these fields adjacent so you can inspect the combination. ## Frequently asked questions ### How often does Hyperliquid pay funding? Funding is transferred every hour. Hyperliquid expresses the rate on an eight-hour basis in its methodology and applies one eighth of that rate each hour. ### Who pays when Hyperliquid funding is positive? Long positions pay short positions when funding is positive. The direction reverses when funding is negative. ### Does Hyperliquid keep the funding payment? No. The documented mechanism transfers funding between long and short positions; it is separate from the protocol trading fee. ## Official sources - [Hyperliquid Docs: Funding](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/funding): Official source used for the product claims on this page. - [Hyperliquid Docs: Oracle](https://hyperliquid.gitbook.io/hyperliquid-docs/hypercore/oracle): Official source used for the product claims on this page. - [Hyperliquid Docs: Robust price indices](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/robust-price-indices): Official source used for the product claims on this page. ## Related pages - [Live Hyperliquid markets](https://hyperliquidreferralcodes.com/markets): Related tool or index. - [Hyperliquid trading-cost calculator](https://hyperliquidreferralcodes.com/calculator): Related tool or index. - [Hyperliquid leverage and liquidation mechanics](https://hyperliquidreferralcodes.com/leverage-liquidation): Related guide. ## Publication details - Publisher: Hyperliquid Field Guide. - Status: Independent and unaffiliated with Hyperliquid Labs and the Hyperliquid Foundation. - Reviewed: 11 Aug 2026 (2026-08-11). - Affiliate disclosure: The site operator may earn protocol referral rewards when eligible users trade with code AWD. Hyperliquid controls eligibility, attribution and rewards. - Contact: research@hyperliquidreferralcodes.com. - Product terms: Check the linked official documentation and the official Hyperliquid app before you act.