Summary
Learn how perps funding rates work on Hype, why longs or shorts pay, and how hourly funding affects your perps cash balance.
Funding rates are payments that move between traders holding long positions and traders holding short positions. They help keep perpetual futures prices aligned with the underlying spot market.
When the perp price trades above spot, longs may pay shorts. When the perp price trades below spot, shorts may pay longs. The direction can change as market conditions change.
Funding applies hourly. If you have an open position when funding applies, the payment is automatically added to or deducted from your perps cash balance.
The funding amount is proportional to position size. Larger positions create larger funding payments, whether paid or received. This is why your perps cash balance can change even when you do not open or close trades.
Hourly funding can add up. A position held for days or weeks may generate meaningful funding costs or earnings. Evaluate funding alongside profit and loss when deciding whether to keep a position open.
You can check the current funding rate for an asset on the trade sheet before opening a position.
FAQ
What is a funding rate?
A funding rate is an hourly payment between long and short traders that helps align perp and spot prices.
Can funding reduce my balance?
Yes. If your side pays funding, it is deducted automatically.
Can funding increase my balance?
Yes. If your side receives funding, it is added automatically.
Related articles: Perps Trading Fees, Risks of Perps Trading, What Are Perpetual Futures.
Legal Notice
Perpetuals ("Perps") are provided by third-party protocols and are not available to U.S. Persons (citizens, residents, or anyone located in the U.S.). Do not attempt to access perps from within the United States.
For purposes of these Terms, a "U.S. Person" means: (i) any natural person resident in the United States; (ii) any citizen or permanent resident of the United States, including any such person temporarily located outside the United States; (iii) any entity organized or incorporated under the laws of the United States or any state thereof; (iv) any estate of which any executor or administrator is a U.S. Person; (v) any trust of which any trustee is a U.S. Person; (vi) any agency or branch of a non-U.S. entity located in the United States; (vii) any discretionary or non-discretionary account held by a dealer or fiduciary organized, incorporated, or (if an individual) resident in the United States; or (viii) any entity organized or incorporated outside the United States that is formed by a U.S. Person principally for the purpose of investing in unregistered securities or derivative instruments. "United States" means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia.
Representations and Warranties. By accessing or using Perps functionality, you represent and warrant that: (a) you are not a U.S. Person; (b) you are not accessing Perps from within the United States; (c) you are not accessing Perps on behalf of, or for the benefit of, any U.S. Person; (d) you will not use any VPN, proxy, anonymization service, location-spoofing technology, or other mechanism to conceal your location, misrepresent your residency, or circumvent geographic or eligibility restrictions applicable to Perps; and (e) you understand that these representations are material and that Hypeshot, Inc. is relying on them in providing you access to Perps functionality.
YOU ACKNOWLEDGE THAT PERPS TRADING CARRIES SUBSTANTIAL RISK OF LOSS. YOU HEREBY RELEASE AND HOLD HARMLESS HYPESHOT, INC. AND ITS AFFILIATES, REPRESENTATIVES, AGENTS, PERSONNEL, PARTNERS, LICENSORS, SERVICE PROVIDERS, OFFICERS, DIRECTORS, EMPLOYEES, AND CONTRACTORS (COLLECTIVELY, THE "COMPANY PARTIES") FROM ANY AND ALL LOSSES, DAMAGES, OR CLAIMS ARISING FROM OR IN CONNECTION WITH YOUR USE OF PERPS FUNCTIONALITY, INCLUDING BUT NOT LIMITED TO LOSSES FROM LIQUIDATION, LEVERAGE, MARKET MOVEMENTS, PROTOCOL FAILURES, OR THIRD-PARTY ACTIONS.