Perpetual Funding Rate & Carry Analysis

Hyperliquid updates funding continuously and settles payments every hour on the hour. Unlike 8-hour venues (such as Binance and Bybit), 1-hour settlement prevents extreme basis distortion during aggressive market runs.

CARRY IMPLICATIONS FOR ETH TRADERS

Current Lean: Funding is balanced. Carry cost is nominal between longs and shorts.

How continuous funding affects holding horizon

Holding a perpetual position creates positive or negative cash flow depending on position side and prevailing rate. At an annualized rate of +3.39% / yr, carry drag must be included in your position expectancy. Model long-term carry using our Funding Rate & Carry Drag Calculator or read our guide on Negative Funding Rate Short Squeeze Mechanics.

Isolated Leverage & Liquidation Buffer Matrix

Estimated drop from entry price before hitting maintenance margin requirements on isolated margin. Actual exchange execution depends on position size, accumulated funding, and tiered bracket limits.

Leverage Bracket Initial Margin Required MMR Adverse Price Move to Liquidation Estimated Long Liq Mark
5x Leverage 20.0% 2.50% ~17.95% price decline $1.95K
10x Leverage 10.0% 1.50% ~8.63% price decline $2.17K
20x Leverage 5.0% 1.00% ~4.04% price decline $2.28K

To calculate custom entry prices, stop buffers, and maintenance tiers, use our free Leverage & Liquidation Buffer Calculator.

Run the numbers for ETH

These free calculators open with the current ETH mark filled in (the ATR is a placeholder 2% of price). Change any value; nothing you type leaves your browser.

All free perpetual futures tools →

Related Educational Guides & Research Tools

RADAR

Backtest and Paper Trade ETH-PERP

Test ETH trend-following, breakout, and mean-reversion strategies with realistic simulated taker fees, slippage, and funding carry. No exchange API keys required.

Launch ETH Backtest Simulator → Get Telegram Whale & Liquidation Alerts ↗