# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hyena.trade/trading/funding-rates.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.