Funding rates

Funding is the periodic payment that keeps a perpetual contract tracking spot price. When more traders are long than short, longs pay shorts, and when the balance flips the payment reverses. On Hyperliquid funding settles every hour, so the cost of holding a position compounds faster than it does on venues that settle every eight hours. These guides cover how the rate is calculated, how to read it before you size a position, how it interacts with your other trading fees, and how some traders harvest it as a strategy in its own right.