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DERIVATIVES · ANNUALISED FUNDING

Annualized Funding Rates: Units and Time Windows That Change the Result

Annualising funding makes rates comparable with other yields. The method — simple or compounded, and with which interval — changes the number.

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

Short answer

Simple annualisation multiplies the per-period rate by periods per year: 0.01% per 8 hours × 1,095 periods ≈ 10.95%. Compounding gives ≈ 11.57%. Funding isn't actually constant, so annualised figures describe the current rate, not expected income. Use the venue's real interval (Binance fundingIntervalHours, Hyperliquid hourly), state simple vs compounded, and compare on the same basis with price moves over the same period.

Method matters

Method0.01% per 8h
Simple (× 1,095)≈ 10.95%
Compounded≈ 11.57%
Wrong interval (assumed 8h, actually 4h)Half the true figure
Annualised figure by method (%)Annualised figure by method (%): Simple 10.95 %; Compounded 11.57 %; Wrong interval 5.48 %.ANNUALISED FIGURE BY METHOD (%)Simple10.95 %Compounded11.57 %Wrong interval5.48 %
State the method and interval. Original ChartsPod editorial graphic.

Price context

Annualised funding is a rate snapshot. Over the same year, price can move several times that amount; compare with care.

Annualising fundingAnnualising funding: Real interval; Simple vs compounded; Snapshot vs average; Same period as comparison; Sign (paid/received).ANNUALISING FUNDINGReal intervalSimple vs compoundedSnapshot vs averageSame period as comparisonSign (paid/received)
A rate, not a forecast. Original ChartsPod editorial graphic.

Using it

Related: Extreme Funding Rates: Units and Time Windows That Change the Result, Funding-Cost Budget: When the Common Rule Produces a Misleading Result.

Check annualised funding beside price in ChartsPod.

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Use the venue's real interval (Binance fundingIntervalHours, Hyperliquid hourly), state simple vs compounded, and compare on the same basis with price moves over the same period.

See Annualized Funding Rates on live data in the free ChartsPod terminal.

Open the ChartsPod terminal

Questions readers ask

How do I annualise funding?

Rate × periods per year (simple).

Simple or compounded?

State which.

Is it expected income?

No; funding changes.

Sources and methodology

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

  1. Binance USD-M: Get Funding Rate History — fundingTime per settlement.
  2. Binance: USD-M Futures market data API — trades, depth, funding and open interest.
  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.