CashboardGlossary · Perps
What is the funding rate?
A funding rate is a periodic payment between perp longs and shorts that keeps the contract trading close to the spot index price.
How does the funding rate work?
One side pays the other every interval, in proportion to position size. Many venues build the rate from two parts: a premium that measures how far the perp trades from the index, and a small fixed interest term. On Hyperliquid that interest term is 0.01 percent per eight hours, so even with zero premium, longs pay about 0.00125 percent an hour.
Positive funding means longs pay shorts. That usually happens when everyone wants leveraged long exposure. Negative funding means shorts pay longs. Intervals differ too: plenty of centralized exchanges settle every eight hours, Hyperliquid every hour. Comparing raw rates across venues is misleading until you put them on the same clock, usually an annual rate.
Take hypothetical numbers: a $20,000 SOL long on a venue with hourly funding of 0.0015 percent. You pay $0.30 an hour, $7.20 a day, about $216 over a month. If the rate flips to minus 0.0015 percent, that money comes to you instead.
Traders also read funding as a crowd gauge: days of high positive funding mean crowded longs, deeply negative funding means crowded shorts. Neither tells you when the turn comes.
Also called: funding, perp funding.
Where does the funding rate show up in Cashboard?
The Funding rates widget shows each Hyperliquid market's current hourly rate next to its APR, its open interest in dollars and 24h volume. The Funding view of Hyperliquid markets sets the predicted Hyperliquid rate against Binance and Bybit, each annualized from its own interval. Perps risk measures how much Hyperliquid, Lighter and Aster disagree on BTC, ETH and SOL funding, as the spread from the highest published rate to the lowest. You can also alert on funding APR, though only for Solana-ecosystem names such as JTO or BONK.
Frequently asked questions
Is a negative funding rate bullish?
Not by itself. It means shorts are paying longs, so short positioning is crowded. That can feed a squeeze if price turns up. It can also stay negative for weeks while price keeps sliding.
How often is funding paid?
Every eight hours on a lot of centralized exchanges, every hour on Hyperliquid. Check the interval before comparing two rates, or an eight-hour rate will look eight times bigger than an hourly rate that costs exactly the same.
Where can you read more about funding rate?
Related terms
Last reviewed . Market data in Cashboard comes from the providers named on each widget and may be delayed. Nothing here is financial advice.