How it works

A fee that changes every hour, fixed for a week

Perp funding is a fee that holders pay or earn every hour. Funding Swap fixes it, like switching an electricity bill from variable to fixed. The other side is a trader who thinks the fee will move their way.

Three steps

Post, get taken, settle

1

Post an offer

Pick a market, a side, a fixed rate, a size (notional) and a term of 1 to 30 days. Your deposit is locked in the contract.

2

Someone takes it

A counterparty locks the same deposit. The swap starts at the next UTC midnight and runs for whole days.

3

Anyone settles

After the last day anyone can trigger settlement. The difference between actual and fixed funding moves to whoever was right, capped at the deposit.

Worked example

10,000 USDC, 7 days, fixed 10% APR

Alice is short a 10,000 USDC HYPE perp and earns funding. She wants a predictable week, so she receives a fixed 10% APR. Bob thinks HYPE funding will run hot and pays fixed. Each deposits 15 USDC.

Fixed leg for the week: 10,000 × 10% ÷ 365 × 7 = 19.18 USDC. Every 1% APR that funding misses 10% moves 10,000 × 1% ÷ 365 × 7 = 1.92 USDC.
Funding averagesActual legSwap paymentAlice's perp earnedAlice's week
15% APR28.77 USDCAlice pays Bob 9.5928.7719.18 USDC
10% APR19.18 USDCnothing moves19.1819.18 USDC
5% APR9.59 USDCBob pays Alice 9.599.5919.18 USDC

The payment is capped at the 15 USDC deposit, so a miss of more than about 7.8% APR is not fully covered. A bigger deposit covers a bigger miss.

Timeline of a swap

From offer to payout

  1. PostThe maker's deposit is locked. They can cancel any time until it is taken; the offer also expires.
  2. TakenThe taker locks the same deposit. Neither side can back out now.
  3. StartsAt the next UTC midnight.
  4. Runs N daysHyperliquid funding accrues every hour; the oracle posts each finished day.
  5. SettleAnyone can call settle once the last day is posted. The difference moves to the winner.
  6. RefundIf the oracle has not posted the last day 7 days after the end, both sides get their full deposit back.
Transparency

Rules you can check

Contracts (source-verified)

The funding index

  • Every value is the sum of Hyperliquid's public hourly funding for that UTC day. Anyone can recompute it (rule).
  • The payment stamped at 00:00 UTC belongs to the day that just ended.
  • Append-only: a day can be posted once, only after it ends, and never changed.
  • Markets: HYPE, SOL, DOGE and BTC perps on Hyperliquid. The app only lists markets whose index is at most 2 days old.
Experimental and unaudited. Deposits are capped at 100 USDC per side and terms at 30 days. The index currently has a single publisher. Only use amounts you can afford to lose.
FAQ

Questions

What if nobody takes my offer?

Cancel it any time and your deposit comes straight back. Offers also expire after the time you set (24 hours by default); you can cancel an expired offer the same way.

What if the oracle stops posting?

If the final day of a swap has not been posted 7 days after the swap ends, either side can call refund and both get their full deposit back.

Who can change the contract?

Nobody. There is no admin key and no upgrade path, and the contract takes no fee. The source is verified on Sourcify.

Do I need a Hyperliquid account?

No. The swap only reads Hyperliquid's funding numbers. To hedge, you would hold the perp there; to predict, you only need USDC on Arc.

What can I lose?

At most your deposit. The payment between the two sides is capped at the deposit, which is itself capped at 100 USDC.

🔒Hedge a perpFix the funding your position earns or pays.Hedge → 📈Predict fundingWin if funding averages above or below your rate.Predict →