Hyperliquid Will Cut Its Funding Cap From 4% an Hour to 0.5%

Hyperliquid will lower the ceiling on what a perpetual position can pay or collect in funding each hour, from 4% to 0.5%. Co-founder Jeff Yan posted the change in the exchange's Discord on Sunday, bundled with two quota increases for HIP-4, the venue's outcome-contract system. Active HIP-4 results per deployer double to 200. The daily deployment cap doubles to 1,000. All of it arrives with the next network upgrade, and no outlet reports a date for that.

What the cap actually caps

Funding is the periodic payment that keeps a perpetual contract tethered to the spot price it tracks. When the contract trades above spot, longs pay shorts; below it, shorts pay longs. Hyperliquid charges this every hour, computing an 8-hour rate and taking an eighth of it each time. The premium component is sampled every five seconds and averaged across the hour. A fixed interest term sits on top of that, 0.01% every eight hours, or 11.6% a year, identical for every asset.

"Funding on Hyperliquid is capped at 4%/hour," the exchange's own documentation said.

Why 0.5% an hour is still a wide ceiling

Run the old limit out over a full day and it comes to 96% of a position's notional value. The new one works out at 12%. Neither is a rate anyone expects to meet. Hyperliquid's documentation describes the 4% figure as considerably less restrictive than the limits at comparable centralized venues, and the exchange has said the ceiling is seldom reached in trading. That remark reaches English through translation and the versions differ in wording, so no single phrasing of it is established. The documentation still carried the 4% number on Monday morning.

Whose feedback, and how many deployers

The four accounts of Sunday's announcement part company on two points. PANews attributes the changes to feedback from builders, ChainCatcher to "community Builders", KuCoin to users. On the daily cap, ChainCatcher writes that the 1,000 figure is per deployer; PANews, KuCoin and Phemex give the number without saying whether it applies to one deployer or to the chain. They do not reconcile, and none of the four reproduces the Discord post in full. Hyperliquid has been reported on closely through a month in which open interest on the venue reached $18 billion.

The other half of the note

HIP-4 covers outcome contracts, binary instruments on whether some event happens. They trade between 0 and 1, settle at 1 if it happens and 0 if it does not, and the price reads as an implied probability. They run inside HyperCore, the exchange's execution layer, on the same orderbook as spot and perpetual markets, so margin and liquidity are shared with the rest of the venue. Doubling both quotas raises how many such markets one deployer can keep open at once, and how many can be created in a day. The exchange has had to work through what happens when a listed market misprices, as when an SK Hynix perpetual flash-crashed on one of its books.

No account gives an upgrade date, a version number, or any count of how often the 4% ceiling was touched in practice. Until the upgrade ships, 4% stands. What a tighter ceiling changes will only show on the days the old one was doing work, when a market's premium runs far enough from spot to press against the limit.