What is a perpetual funding rate?
A funding rate is a market-driven fee that perpetual futures longs pay shorts (or vice versa) at fixed intervals. The mechanism keeps the perp price anchored to the underlying spot price: when more capital crowds long, longs pay shorts; when more capital crowds short, shorts pay longs. The rate is calculated from the difference between the perp mark price and the spot index, plus an interest-rate component. No central authority sets it — it is a market clearing price between the two sides of an open contract.
How often is funding paid on Hyperliquid?
Hyperliquid charges funding hourly. Every hour, your position either receives or pays a small fraction based on the current funding rate. This is a critical detail because most public material on perp funding assumes the CEX standard of every 8 hours — Hyperliquid is on a faster cadence. To convert any Hyperliquid funding rate to an annualized figure, multiply the hourly rate by 24 × 365 = 8,760. To get the equivalent 8-hour rate for cross-CEX comparison, multiply by 8.
How does funding differ from CFD overnight financing?
CFD overnight financing is a unilateral charge set by the broker: every night the position is open, the broker debits a fee calculated as a base interbank rate plus a 2–3% spread (the broker's margin). The trader has no offsetting party — the broker pockets the entire fee. Perpetual funding is bilateral and market-driven: the rate is paid between traders on opposite sides of the same contract, with zero broker markup. On a flat-market day, perp funding can be zero or even negative for one side; CFD financing is never zero, because it includes the broker's margin.
When is a funding rate considered extreme?
Annualized funding above +30% APR sustained for more than 24 hours signals an overcrowded long position — a setup that often precedes a long-side squeeze. Annualized funding below -30% APR signals the inverse: an overcrowded short, which often precedes a short squeeze. Funding rates exceeding +50% APR or -50% APR are statistically uncommon and indicate genuinely one-sided positioning. For reference: a +50% APR funding rate means a long position pays approximately 0.137% per day to maintain the position.
How do I read funding rates on Hyperliquid?
Use the Hyperliquid info API at https://api.hyperliquid.xyz/info with payload {type: 'metaAndAssetCtxs'}. The response includes a funding field on each market's asset context. That value is the hourly rate as a decimal (for example, 0.0000125 = 0.00125% per hour = +10.95% APR). Alternatively, every ARX market landing page at arx.trade/markets/<ticker>/ shows the live funding rate refreshed every 30 seconds.