> For the complete documentation index, see [llms.txt](https://docs.hyena.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hyena.trade/trading/funding-rates.md).

# Funding Rates

#### Funding Rate on HyENA

HyENA's funding rate mechanism replicates Hyperliquid's native funding rate mechanism.

Funding rates keep perpetual prices aligned with spot prices through peer-to-peer payments between longs and shorts. No platform fees are taken.

Funding has two parts:

* Interest rate: fixed at 0.01% every 8 hours (≈11.6% APR paid to shorts).
* Premium: varies based on how far the perp price deviates from the oracle spot price.

If the perp trades above spot, longs pay shorts. If it trades below, shorts pay longs.

Funding is calculated hourly (1/8 of the 8-hour rate) using the formula:

> F = P + clamp(Interest − P, −0.0005, 0.0005)

\
Funding is capped at 4% per hour, preventing extreme swings.

This system ensures HyENA's perpetual prices stay stable, fair, and consistent with the underlying market.