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DERIVATIVES · ANNUALISED FUNDING

Annualized Funding Rates: How to Read the Data With Price Context

Annualising funding makes rates comparable to interest rates and basis yields. It can also make a short spike look like a permanent return.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

Annualised funding = rate per period × periods per year (8h: 1,095; 1h: 8,760). It is useful for comparing funding with futures premiums, lending rates or across venues. But funding changes every period, so an annualised figure from one reading is a snapshot, not a yield you will earn. Use averages over meaningful windows (7 or 30 days), read them against price context (funding often spikes during strong moves) and state the window.

Calculation

ReadingIntervalAnnualised
0.01%8h10.95%
0.03%8h32.85%
0.00125%1h10.95%

Hyperliquid's documented interest component of 0.01% per 8 hours (0.00125% per hour) annualises to about 10.95%; its funding also includes a premium component.

Compare Annualized Funding Rates across Binance, Bybit, OKX and Hyperliquid markets.

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Snapshot vs average

Illustrative annualised funding by window (%)Illustrative annualised funding by window (%): Spot reading during rally 60 %; 7-day average 24 %; 30-day average 12 %.ILLUSTRATIVE ANNUALISED FUNDING BY WINDOW (%)Spot reading during rally60 %7-day average24 %30-day average12 %
A rally spike overstates the long-run rate. Original ChartsPod editorial graphic.
Using annualised fundingUsing annualised funding: State the window; Use averages for yield estimates; Note price context of spikes; Same interval conversion; Compare with basis (see carry guide).USING ANNUALISED FUNDINGState the windowUse averages for yield estimatesNote price context of spikesSame interval conversionCompare with basis (see carry guide)
Annualise, then average. Original ChartsPod editorial graphic.

Conclusion

Related: Crypto Funding Rates: Compare One-Hour and Eight-Hour Payments, Annualized Futures Premium: Calculate Carry After Fees and Funding, Extreme Funding Rates: How to Read the Data With Price Context.

Annualise funding for comparison, but use multi-day averages and price context before treating it as a yield.

Check Annualized Funding Rates against a live market before relying on it.

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Questions readers ask

How do I annualise funding?

Rate per period × periods per year.

Is annualised funding a yield?

Only if it persists; one reading is a snapshot.

Which window?

7- or 30-day averages for estimates.

Sources and methodology

Definitions follow Binance's USD-M market data documentation, Hyperliquid's funding documentation and Bybit's liquidation rules, read 17 October 2026. Examples are illustrative, not recorded market data.

  1. Binance: USD-M market data (long/short ratios, OI statistics, klines) — ratio definitions, 30-day retention, kline open/close time.
  2. Hyperliquid docs: Funding — hourly payments, 1/8 of the 8-hour rate, oracle price for notional.
  3. ChartsPod: product overview, pricing and FAQ — free terminal, venues, modules, no order placement; checked 17 Oct 2026.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.