Funding Rates Explained: Why a Perp Position Bleeds Overnight

A perpetual future has no expiry, so something has to pull its price back toward spot. That something is funding: a periodic payment between longs and shorts.

Reading the Rate

A positive rate means longs pay shorts. The number quoted is per interval, not annualized, which is the first place people misread it.

Where Each Venue Settles

• Hyperliquid settles every hour
• Binance and Bybit settle every eight hours
• A position closed before settlement pays nothing

Carry is a cost of holding, not of trading. It does not show up in your entry or your fees.