Funding Fee

The funding fee mechanism promotes a regular cash flow exchange between long and short position holders in perpetual contracts, aligning the perpetual contract prices with the index price.

Fee Collection

• Payment Method: When the funding rate is positive, traders with long positions pay traders with short positions; conversely, when the funding rate is negative, traders with short positions pay traders with long positions. Note that Hyperion Exchange only facilitates the exchange of funds between holders of long and short positions (or liquidity providers) and does not charge any funding fees itself.

• Collection Frequency: Hyperion Exchange collects funding fees every 4 hours. Actual collection and payment are completed within 1 minute for each individual contract at millisecond intervals, without stopping trading. Funding fees are only applicable if a position is held at the moment of collection. If positions are closed before the collection of fees, no funding fees are required. In the event of early contract delisting before settlement, the funding fee for the current period is not required. The timing of these funding fee transactions may be adjusted in real-time based on market conditions.

• Recipients: Counter parties, Liquidity Providers (LPs)

• Collection Times: At the time of position closing, liquidation, and max profit closing.

Funding Fee Calculation

1. Daily funding fee rates payable by holders of long and short positions:

- Long Position Funding Rate = Base Rate + Linear Rate * Long Position / (Total Liquidity * Maximum Liquidity Utilization Rate)- Short Position Funding Rate = Base Rate + Linear Rate * Short Position / (Total Liquidity * Maximum Liquidity Utilization Rate)- Maximum Liquidity Utilization Rates may vary for each trading pair. For specific details, refer to Token Details.

2. Daily risk compensation received by LPs from the funding fees paid by long positions:

- LP Earnings = Long Position * Long Position Funding Rate * (Long Position - Short Position) / Long Position

3. Actual daily funding fees paid by long positions / received by short positions:

- Long Position Funding Fee = Short Position Size * Short Position Funding Rate - Long Position * Long Position Funding Rate- Short Position Funding Fee = Short Position Size * Long Position Funding Rate - Short Position * Short Position Funding Rate

4. Actual daily funding fee rates for long and short positions:

- Actual Long Position Funding Rate = Long Position Funding Fee / Long Position Size- Actual Short Position Funding Rate = Short Position Funding Fee / Short Position Size