Funding rates

Funding calculation and fee period.

Funding calculation

The oracle price helps calculate funding rates (payments between long and short traders). To help balance liquidity and maintain mark to oracle price.

Funding = rate calculation, paid every 8 hours

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Rate calculation

Funding Rate = Average Premium Index (P) + clamp (interest rate - Premium Index (P), -0.0005, 0.0005)

$$Funding=P+clamp(I−P,−0.0005,+0.0005)$$

Standard by HyperLiquid

How It Works

• If Mark > Oracle, longs pay shorts.

• If Mark < Oracle, shorts pay longs.

• Payments occur periodically (e.g., every 8 hours), calculated using the volume-weighted TWAP of the mark–oracle difference.

Safeguards

• Excludes tail-window samples and self-trades.

• Attenuates or pauses funding in shallow-liquidity periods.

• TWAP averaging prevents price “gaming” near funding windows.

Example

External Index = 200
Internal Mark EMA = 250
Oracle = (200 × 0.6) + (250 × 0.4) = 220

If mark trades at 230 → mark > oracle → longs pay shorts → shorts enter to earn funding → price normalizes.