Funding Rate Perpetuals

This perpetual contract allows traders to speculate on or hedge the funding rate of HYPE perpetuals, isolating the cost of carry"from the price of HYPE itself.

What it Tracks

The annualized funding rate of HYPE perpetuals.

Index Definition

I_t (The Index): A continuously updated cumulative coupon index representing the total, time-weighted HYPE funding rate paid out by the contract.

I_t = ∫(r_s/D_hr)ds. D_hr= 8760. Here r_s is the signed, annualized funding rate of the HYPE perpetual at time s.

Oracle Type

An Always-In-Session Oracle that operates 24/7 without weekend or off-hours policies.

Market Type

Funding-Rate Perpetual. This contract is a direct swap on the annualized funding rate.

PnL Formula

PNL (Long) = Position_Notional × (I_exit - I_entry)
PNL (Short) = Position_Notional × (I_entry - I_exit)

Where:

Position_Notional: The total USD notional value of the position.
I_entry / I_exit: The value of the Cumulative Coupon Index when the position is opened and closed, respectively.

Use Cases

Long:

• Receive fixed, pay HL funding → “Cap my funding-cost if I’m long BTC elsewhere.” • Lock-in predictable APR when running basis trade. • Get paid when BTC funding spikes. • Speculate on bull-run long premium. •Hedge a long BTC position on HL or binance (which pays funding) Short:

• Pay fixed, receive HL funding → “Get paid when BTC funding collapses.” • Hedge a short-BTC position on HL or Binance (which receives funding). • Profit if funding collapses negative in bear market.

Users

• Basis Desks & Delta-Neutral Funds

• Quantitative Hedgers

• Sophisticated HYPE Traders & Speculators

Vol-stat (σ)

Moderate: while variable, it is expected to be in a similar range to other major asset funding rates (e.g., ~40 bp/yr), though it can be higher during periods of extreme sentiment around HYPE.

Margin Numbers

Derived from the Max Leverage tiers. For the initial 4x leverage tier, the Initial Margin (IM) is 25% of the notional position value.