Funding is the hourly rate paid by the net-long side to the net-short side on Hyperliquid. Annualized = hourly rate × 24 × 365. Peak recorded at 00:00 UTC Aug 3. Source: Hyperliquid fundingHistory API.
On Hyperliquid, the funding rate is paid every hour by the dominant side to the minority side. When longs outnumber shorts, the rate is positive — longs pay shorts. This is a position-holding cost, not a return or yield. At 237%/yr annualized (the annualized cost paid by long-position holders to short-position holders per the Hyperliquid protocol), the hourly cost works out to approximately 0.027% per hour. For a $10,000 long position, that is $2.70 per hour, or $65 per day.
That cost compounds on top of an unrealized loss. A position opened at the pump high ($1.24) and held to the current level ($1.03) carries a 16.9% decline in position value. At $10,000 notional, the mark-to-market change is approximately $1,690. Each day at the current 99%/yr funding rate adds another $27 in holding cost.
| Scenario | Entry Price | Current | P&L Loss | Daily Funding Cost | Total 3-Day Cost |
|---|---|---|---|---|---|
| Pump buyer | $1.24 | $1.03 | −16.9% | ~$27 | ~$1,775 |
| Re-test buyer | $1.21 | $1.03 | −14.9% | ~$27 | ~$1,572 |
| Bottom buyer | $0.97 | $1.03 | +6.2% | ~$27 | +$539 |
Daily funding cost calculated at current 99%/yr on a $10,000 long position. 3-day total includes mark-to-market P&L + 3 days of funding at 99%/yr. Funding rate changes hourly. Figures are illustrative of the carry mechanics, not a prediction.
The $24.5M in total open interest is paying approximately $6,600 per day at the current 99%/yr rate. That is funding revenue flowing to the short side. For every day longs collectively hold this exposure, shorts receive roughly $6,600 in funding payments without needing any further price movement in their favor.
Positive funding during a price decline has a specific mechanical meaning: the perp market is net long, and longs are paying shorts a premium to maintain that positioning. The magnitude of the premium reflects how one-sided the book is and how urgently longs are holding relative to shorts.
At the Aug 3, 00:00 UTC snapshot, KAITO funding hit 237%/yr simultaneously with the price low of $0.97. Typically, a sharp price decline reduces the net-long imbalance as longs exit, bringing the funding rate back toward neutral. Elevated funding during a price decline indicates the net-long count remained high: longs did not close in sufficient volume to rebalance the book.
Three mechanical scenarios are consistent with this pattern: (a) longs accumulated during the pump held through the decline without closing; (b) new longs opened near the low, offsetting any exits and keeping the net-long count elevated; (c) short-side participants reduced exposure into the drop, making the book less balanced. The funding data cannot distinguish between these. What it confirms is that the perp market remained net long through the entire decline, with the hourly cost paid by the long side rising as the price fell.
At 99%/yr — the current rate — KAITO longs pay approximately 9× more per day than BTC longs (paying +11%/yr on $2.24B OI) to hold equivalent notional exposure.
The following are mechanical metrics from the Hyperliquid public API, presented for informational purposes only. They are not trading signals and do not constitute a recommendation to buy, sell, or hold any position.
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Join ARX Signals →This is market data commentary for informational purposes only, based on publicly available data from the Hyperliquid API on a best-efforts basis. It does not constitute financial advice, investment advice, or a recommendation to buy, sell, or hold any asset or take any trading action. Perpetual futures markets carry significant risk; participants may lose all amounts deployed. Past market structure, funding rates, and positioning data do not predict future outcomes. Funding rates are snapshots and change hourly. ARX is a non-custodial analytics and order-transmission platform; it does not hold user funds, manage assets, or provide financial advice. All figures sourced from the Hyperliquid public API (metaAndAssetCtxs, fundingHistory). Snapshot: 3 Aug 2026, 02:08 UTC.