Funding rates explained
The funding rate is a payment that long and short traders make to each other at regular intervals, so that a perpetual future stays close to the price of the asset it tracks. It is not a fee paid to the exchange or to Verve.
Updated 2026-11-08
Why funding exists
A perp never expires, so nothing forces its price to meet the asset price on a settlement date. Funding does that job. When the perp trades above the asset price, longs pay shorts, which makes holding a long more costly and a short more attractive. When the perp trades below, shorts pay longs.
Positive and negative funding
| Funding rate | Who pays | Who receives |
|---|---|---|
| Positive | Longs | Shorts |
| Negative | Shorts | Longs |
| Zero | Nobody | Nobody |
How it is paid
On Hyperliquid, funding is paid every hour. The payment on your position is its size times the funding rate, so a large position pays or receives more. The rate can change from one hour to the next, and funding you have paid or received on a position is shown on that position in Hyperverve.
Funding is paid whether the position is in profit or in loss, and it is separate from the exchange fee on your orders.
Reading a funding rate
- A rate is usually quoted per hour. A small hourly rate adds up over a day or a week.
- A very high positive rate says many traders are long and willing to pay to stay long. It does not say the price will fall.
- Funding is one cost of holding a perp. For a short trade it can be a cost or an income, depending on the sign.
On Verve
Hyperverve shows each market's current funding rate and the funding on your open positions. Verve takes 0% on Hyperverve; funding goes between traders on Hyperliquid. Leveraged trading involves substantial risk, including the loss of all the margin on a position. Nothing here is financial advice.
Is the funding rate a fee charged by Verve?
No. Funding is paid between long and short traders. Verve takes 0% on Hyperverve, and Hyperliquid's own exchange fee on orders is separate from funding.
How often is funding paid?
On Hyperliquid, funding is paid every hour.
Can funding be income?
Yes. When the rate is positive, shorts receive it, and when it is negative, longs receive it. The rate can change every hour, so it is not a steady income.