Baba (KM) (BABA) Funding Rate

Live BABA perpetual funding rate data on Hyperliquid. The funding rate determines payments between long and short traders every 8 hours.

Current Funding Rate (8h)
+0.0064%
Longs pay shorts
Annualized Rate
+7.03%
Projected annual cost/yield at current rate

What This Means

Slightly Bullish

The funding rate is marginally positive, indicating a slight lean toward long positions. The market is close to neutral.

BABA Market Context

Price
$151.19
-3.63%
Open Interest
$609.4K
Volume 24h
$147.6K
Mark / Oracle
$151.19
$151.15

Understanding Funding Rates

Funding rates are a mechanism unique to perpetual futures contracts. Unlike traditional futures that expire on a set date, perpetual contracts have no expiry. To keep the perpetual price aligned with the underlying spot price, exchanges use a funding rate system where one side periodically pays the other.

On Hyperliquid, funding is settled every 8 hours (three times per day). When the perpetual price trades above the oracle (spot) price, the funding rate is positive and long traders pay short traders. When it trades below, the funding rate is negative and shorts pay longs. This incentivizes arbitrageurs to close the gap between perpetual and spot prices.

For Baba (KM) (BABA), the current funding rate of +0.0064% per 8h means that a $10,000 position on the paying side would cost approximately $0.64 per funding period. Over a year at this rate, the annualized cost would be 7.03% of the position size.

Frequently Asked Questions

The current BABA funding rate is +0.0064% per 8-hour period. This means long positions pay short positions at this rate every 8 hours. Annualized, this equates to approximately +7.03%.
Baba (KM) perpetual contracts on Hyperliquid use a funding rate mechanism to keep the perpetual price anchored to the spot price. Every 8 hours, the side with more demand (longs or shorts) pays the other side. If the perpetual price is above spot, longs pay shorts (positive funding). If below, shorts pay longs (negative funding).
A positive funding rate for BABA means long position holders are paying short position holders. This indicates bullish market sentiment. Traders holding long positions will incur a cost, while those on the opposite side will earn the funding payment.
Baba (KM) funding rate on Hyperliquid is settled every 8 hours, which means there are 3 funding periods per day. The rate can change each period based on market conditions and the premium/discount of the perpetual price relative to the oracle price. Traders should monitor funding rates before and during their positions.
Yes, traders can earn funding payments by taking the side that receives payment. For example, when BABA funding is positive, short positions receive funding payments from longs. Some traders use a "funding rate arbitrage" strategy by hedging their position on the spot market while collecting funding. However, this requires careful risk management.

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