Mark Price, Oracle Price & Funding
Learn which prices matter for your PnL and liquidation, and how hourly funding keeps perps close to spot.
A perp screen shows more than one price. Knowing which one is used for what saves you from nasty surprises.
The three prices
- Last traded price — the price of the most recent trade on the order book. It can spike for a moment on a single large order.
- Oracle price — an external price built from major spot exchanges. It anchors the perp to the real market.
- Mark price — a fair-value price derived from the oracle and the order book. It is what your unrealized PnL and liquidation are measured against.
Why perps need funding
Because a perpetual never expires, nothing forces its price to meet the spot price on a set date. Funding solves this: a regular payment between longs and shorts that pushes the perp back towards the oracle price.
- When the perp trades above spot (more demand to be long), funding is positive: longs pay shorts.
- When the perp trades below spot, funding is negative: shorts pay longs.
- The payment makes the crowded side more expensive to hold, encouraging traders to take the other side until the gap closes.
How much you pay or receive
Funding payment = position value × funding rate- Position value:
- Your position size × the oracle price
- Funding rate:
- Set every hour on Hyperliquid; positive = longs pay, negative = shorts pay
| Position | Long 1 BTC at a $60,000 oracle price |
|---|---|
| Funding rate | +0.00125% per hour |
| Payment | $60,000 × 0.0000125 = $0.75 paid by you |
| Over 30 days | $0.75 × 24 × 30 ≈ $540 |
Small per hour, but it adds up: holding a large position for weeks against funding is a real cost.
On Hyperliquid, funding is exchanged every hour. When the market is balanced the rate sits at a small baseline (+0.00125% per hour, about 11% a year); in heated markets it can be many times higher.
Key takeaways
- Your PnL and liquidation are measured against the mark price.
- Funding is paid between longs and shorts every hour to keep the perp near spot.
- Positive funding: longs pay shorts. Negative funding: shorts pay longs.