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Funding and liquidation
Two things happen on a perp without you pressing anything: funding, paid or received every hour, and liquidation, which closes the position if the price goes too far against you. Both come out of the position’s margin.
Funding
Section titled “Funding”A perp never expires, so it needs something to keep its price pinned to the asset it follows. That something is funding: a regular payment between those who are long and those who are short.
- When funding is positive, longs pay shorts. It happens when the perp trades above its reference, usually because more people are buying.
- When it is negative, shorts pay longs.
On Hyperliquid it is paid every hour. What you pay or receive is worked out on the size of the position, not on your margin, so leverage makes it weigh more: at 10x you pay ten times what you would at 1x with the same margin. Every does not charge or keep any of the funding: it is between the people trading on Hyperliquid.
Where you see it
Section titled “Where you see it”On the market’s page, tap More details. Under About this asset:
- Holding cost per day: the current rate, turned into a day. If the payment goes your way, the row reads Paid to you per day for holding. It is this hour’s rate times 24: it changes every hour and promises nothing about tomorrow’s.
- Holding cost so far, if you have the position open: what that position has paid in funding since you opened it.
Funding also shows in your result and, on isolated margin, in the liquidation price: what you pay comes out of the margin and brings it slowly closer.
Example
Section titled “Example”An example with made-up figures: you open a long with a $1,000 size ($100 of margin at 10x) and funding is at 0.0010% per hour, positive.
| Period | Rate | You pay |
|---|---|---|
| One hour | 0.0010% | $0.01 |
| One day | 0.024% | $0.24 |
| Thirty days, if it never changed | 0.72% | $7.20, 7.2% of your margin |
In practice the rate changes every hour, and on markets crowded to one side it can be quite a lot higher.
Liquidation
Section titled “Liquidation”If the price reaches the liquidation price, Hyperliquid closes the position on its own. On isolated margin, which is what the phone uses, you lose that position’s margin; the rest of your money is not touched.
The liquidation price is in two places:
- On the order screen, before you open, as Liquidation price: “If the price reaches it, the position closes itself and you lose what you put in. It is an estimate: fees and upkeep move it.”
- On the market’s page, on your position’s card, next to the Entry price.
How it is worked out and how it changes with leverage is in Leverage and margin.
Every does not warn you
Section titled “Every does not warn you”There is no warning before a liquidation: not in the app, not by email, no notifications. Each person watches their own positions, as on any exchange. What the app owes you is the liquidation price in plain sight, and it gives you that.
Afterwards, the position shows in Activity as “Long BTC 10x · liquidated”.
How to avoid it
Section titled “How to avoid it”- Use less leverage. Nothing pushes the liquidation further away. At 1x long there is none.
- Set a stop loss when you open. It closes the position before the liquidation and leaves you part of the margin. See Order types.
- Watch your positions, especially when the market is moving a lot or you have been paying funding for a while.
- Close part or all of it if the price gets close. On the phone you cannot add margin to an open position.
When Hyperliquid closes your position without liquidating it
Section titled “When Hyperliquid closes your position without liquidating it”If a liquidation is too large for the market to absorb, Hyperliquid can close winning positions on the other side to cover it. This is called auto-deleveraging (ADL). If it hits you, your position closes with its gain, without you asking, and shows in Activity as “· closed by Hyperliquid”. You do not lose the margin: what you lose is staying in the position.