Hyperliquid
Hyperliquid funding rates and wallet returns
Funding is a recurring payment between perpetual long and short positions under the venue’s rules. Its direction and rate can change. Funding affects the account’s net outcome while a position is held, so a profitable price move can still have a materially smaller result after funding costs.
Funding is separate from entry and exit fees
An execution fee arises when an order fills. Funding relates to holding a perpetual position over applicable funding times. A position can incur funding without trading again. A displayed unrealised price gain is therefore not necessarily the account’s full net gain from holding it.
On Hyperliquid, read the official funding method and current market information instead of extrapolating from another venue’s schedule. A historical rate describes a particular interval, while a current or predicted rate is not a promise that future rates remain unchanged.
Check the sign and position direction
Under the usual positive-rate convention, longs pay shorts; at a negative rate, the direction reverses. Confirm the sign convention in the field or report you are reading, because funding received can be expressed differently from the rate itself. A positive funding amount in a wallet report needs its documented meaning.
Hypothetical example: at a 0.01% rate for an applicable interval, a $10,000 position has a funding amount of about $1 in a simplified notional-times-rate calculation. The real amount depends on the venue’s defined price, size and accounting rules.
Annualized displays can be misleading
A large annualized percentage can result from multiplying one short interval across a year. It does not show that the same payment will persist. Funding can vary, reverse or be outweighed by market losses. Treat an annualization as a conditional arithmetic display rather than a yield guarantee.
A delta-neutral-looking position also has basis, execution and margin risk. Public wallet data may show only one side of a hedge. Do not call an account a funding strategy merely because its observed direction currently receives payments.
Include funding in copy research
Leader and follower entry times can differ, so their held durations and funding totals can differ. Reconcile actual observed funding over the review window rather than using today’s rate for the whole history. Check whether portfolio simulations include funding and whether displayed PnL already includes it. Preserve unavailable funding history instead of assuming zero.
- Read rate direction and amount convention.
- Use actual held intervals where available.
- Distinguish funding from fill fees.
- Avoid treating an annualized rate as a forecast.