PERPETUAL METRICS

What is a funding rate?

The funding rate is a periodic payment exchanged between long and short holders of a perpetual futures contract. When the rate is positive, longs pay shorts; when it is negative, shorts pay longs. It exists to pull the perpetual's price back towards the underlying spot index, because a perpetual never expires and has no settlement date to do that.

Live funding rates across seven exchanges

Positive rateLongs pay shorts; perp above index

Negative rateShorts pay longs; perp below index

IntervalHourly on Hyperliquid, 8h on most CEXs

Paid onPosition notional, not margin

How the funding rate is calculated

Each venue computes a premium: the difference between the perpetual's mark price and the spot index, averaged over the interval. A fixed interest component, usually 0.01% per eight hours, is added, and the result is clamped to a maximum. Hyperliquid settles every hour, Lighter and RISEx hourly, while Binance, Bybit, OKX, and BloFin settle every four or eight hours depending on the market.

The payment is rate multiplied by position notional. A 0.01% rate on a $100,000 position is $10 per interval, regardless of how much margin backs the position. That is why funding matters more the higher your leverage: at 20x, a $10 payment is 0.2% of your margin every interval.

Reading and comparing funding

Persistently positive funding means the market is paying to be long: traders are crowded on that side and willing to pay for it. Extreme readings, positive or negative, often precede sharp reversals because the crowded side is the one that gets liquidated when price turns. Funding near zero means the perp is trading close to spot.

Because intervals differ, raw rates are not comparable across venues. Proliquid's funding pages normalize every rate to an 8-hour equivalent and an annualized figure. Annualized funding is an extrapolation of the current rate, not a promised yield; rates change every interval. When two venues disagree on the same market, a long on the cheaper venue and a short on the dearer one collects the difference: that is funding arbitrage, before fees, slippage, and the margin required on both sides.

Example: what a BTC long pays over a day

WORKED EXAMPLE

A trader holds a $50,000 BTC long on Hyperliquid at 10x leverage, so $5,000 of margin. Hourly funding is running at +0.0012%.

Rate per hour: +0.0012% (longs pay)
8-hour equivalent: +0.0096%
Annualized: About +10.5%
Payment per hour: $0.60
Payment per day: $14.40, or 0.29% of margin
Same size on a venue at -0.0050% / 8h: Receives $7.50 per day

Over a month the Hyperliquid long pays about $432 in funding, 8.6% of its margin. A short on the negative-funding venue against it would have collected the spread instead.

DATA IN TERMINAL

Watch it live
beside your chart.

The Proliquid funding screen streams every rate live, ranks the spreads between venues, and opens the market in Terminal with one click.

Seven venues normalized to 8h and annualized
Max-arb spread ranked per market
Open interest and volume beside every rate

Open the funding screenFree to use. Connect your exchange to trade.

PERPETUAL METRICS

Funding rate: common questions

Short answers to the questions traders ask most about this term. For the rest of the glossary, start from the Learn index.

All glossary terms Live funding rates across seven exchanges

Who receives the funding payment?

The other side of the market. Funding is paid between traders, not to the exchange: positive rates transfer from longs to shorts and negative rates from shorts to longs, in proportion to position size.

What is considered a high funding rate?

On an 8-hour basis, 0.01% is the neutral baseline most venues use. Rates above 0.05% per 8 hours (over 50% annualized) are high and signal a crowded long side; sustained negative funding is the mirror. Small caps swing much further than BTC and ETH.

How do I avoid paying funding?

Close the position before the settlement timestamp, hold it on the side that receives funding, or trade the same market on a venue where funding is lower. The funding rate pages list the next settlement time for each venue.

What is funding rate arbitrage?

Holding a long on the venue with the lowest funding and an equal short on the venue with the highest, so price moves cancel out and you collect the difference in payments. Returns are reduced by fees, slippage, margin on both venues, and the chance that the spread flips.