Hyperliquid Funding Rates Explained: How to Scan for Carry Trades

What are Hyperliquid perpetual funding rates?

Perpetual futures on Hyperliquid don't have an expiry date. Instead, they use a funding rate mechanism to keep the perpetual price anchored to the spot price. Every 8 hours:

• If the perp trades above spot (positive funding), longs pay shorts.
• If the perp trades below spot (negative funding), shorts pay longs.

Funding rates reflect market sentiment. High positive funding means the market is heavily long and bullish — longs are paying a premium to hold their positions. High negative funding means shorts dominate.

How to read funding APR and predicted rates

The 8-hour rate vs APR

Hyperliquid quotes funding as an 8-hour rate (e.g., 0.01% every 8 hours). To compare opportunities across assets or against traditional yields, convert to an annualised rate: 0.01% × 3 (payments per day) × 365 = 10.95% APR. The LabelYX Funding Scanner converts all rates to APR automatically and sorts by yield.

Predicted vs current funding rate

The current rate is the rate charged at the next settlement (every 8 hours at 00:00, 08:00 and 16:00 UTC). The predicted rate estimates what the next settlement will be based on current order book imbalance — it updates in real time. Use the predicted rate to anticipate whether a position will cost or earn more in the near term.

Using Hyperliquid funding rates for carry trades

A carry trade (or cash-and-carry) earns funding by being short the perp while holding the spot asset. If BTC funding is +50% APR, you can:

1. Buy BTC spot (or hold it).
2. Short BTC-PERP on Hyperliquid for an equal notional amount.
3. Your net directional exposure is hedged (delta-neutral).
4. You collect the 50% APR funding from longs every 8 hours.

Key risks: funding rates can reverse (flip negative), the short leg can move against you if margin is insufficient, and execution slippage eats into yield. Size conservatively and monitor predicted rates daily.

How to scan for the best Hyperliquid funding rates

1. Open the LabelYX Funding Scanner — no wallet or sign-up needed.
2. Assets are ranked by APR. Toggle between highest positive (best for shorts) and highest negative (best for longs).
3. Review the predicted rate column to see where funding is heading next settlement.
4. Check open interest alongside APR — high OI with high funding signals a more established trend than a spike on a low-liquidity asset.
5. Use the built-in carry calculator to estimate daily and monthly income for a given position size.

The Markets Hub also shows funding rates in the broader context of spot vs perp price spreads for every Hyperliquid asset.