PolyTerminal
How to use it
Choose the market type: crypto markets use the full funding scale and every other market uses half of it. Type the average premium of the hour in percent, which is how far the perpetual traded above (positive) or below (negative) its index price, or tap a quick value. Then enter your side, the position value and the hours you hold. The result shows the hourly rate and who pays whom, then the payment each hour and over your holding time. The chart draws the hourly rate for every premium from minus 1 to plus 1 percent and marks yours.
How the hourly rate is built
Funding is computed in stages. The exchange samples a premium index from the order book every 5 seconds, averages the samples over the charge window of 1 hour, runs the mean premium through an eight-hour formula, divides by eight and caps the result. In Polymarket's documentation the two steps are F_8h = scale * (mean_P + clamp(0.0001 - mean_P, +/-0.0005)) and FR_hour = clamp(F_8h / 8, +/-0.04), where mean_P is the average premium and the scale is 1.0 for crypto, 0.5 otherwise.
The formula has a fixed interest leg of 0.01% per 8 hours, and the adjustment between that leg and the premium is clamped at +/-0.05%. The hourly rate is capped at 4% per hour. This calculator takes the average premium as an input, because the exchange computes it from its own order book: it applies the formula and the cap and leaves the premium to you.
A positive hourly rate is paid by longs and received by shorts, and a negative rate the other way round. The payment is a direct transfer between traders. The funding rate guide explains each step in more detail. To see what funding does to a whole trade, use the PnL calculator or the liquidation calculator, which both have an optional funding block.
What the chart shows
Inside a narrow band of premiums around zero the hourly rate does not move: the interest term and the clamp cancel the premium, and only the fixed interest leg is left, so longs pay a small amount. Outside the band the rate follows the premium, at one eighth of it on a crypto market and one sixteenth on any other. The marker shows where your premium sits.
What the calculator leaves out
- The premium itself. The premium moves every few seconds, and the average of the hour is only known when the hour ends. Polymarket publishes the rolling samples and the rate they imply, so use those for a live number.
- A changing rate. The payment multiplies the hourly rate by the hours as if the rate stayed the same. In practice it changes every hour.
- The price basis. Polymarket's documentation says funding is proportional to the size of the position and the hourly rate, and does not spell out which price a payment is based on. Treat the amounts as an approximation.
- The yearly figure. It multiplies the hourly rate by the hours of a year and does not compound. It is an illustration of scale, not a forecast.
FAQ
Who pays funding on Polymarket Perps?
Traders pay each other. When the hourly rate is positive, longs pay shorts, and when it is negative, shorts pay longs. It is a direct transfer, and the protocol takes no cut.
How often is funding charged?
Once per charge window of 1 hour. The exchange samples the order book during the hour, averages the samples, applies the formula and settles the resulting hourly rate against every open position at the end of the hour.
What is the maximum funding rate?
The hourly rate is capped at 4% per hour. The cap only matters in a sustained and extreme gap between the perpetual and its index.
Is funding the same on every market?
No. The formula uses a scale that is 1.0 for crypto, 0.5 otherwise, so for the same premium a market that is not crypto pays half as much as a crypto market. The premium itself differs by market and by hour.
Sources and checks
Every rule quoted in this article comes from the registry below. Each row names the official page and the day it was compared with the text.
All 9 rules used in this article
| Rule | Value | Official source | Checked |
|---|---|---|---|
| Premium index sampling | every 5 seconds | docs.polymarket.com/ | |
| Funding charge window | 1 hour | docs.polymarket.com/ | |
| Eight-hour funding formula | F_8h = scale * (mean_P + clamp(0.0001 - mean_P, +/-0.0005)) | docs.polymarket.com/ | |
| Hourly funding rate formula | FR_hour = clamp(F_8h / 8, +/-0.04) | docs.polymarket.com/ | |
| Funding scale | 1.0 for crypto, 0.5 otherwise | docs.polymarket.com/ | |
| Funding interest leg | 0.01% per 8 hours | docs.polymarket.com/ | |
| Funding interest clamp | +/-0.05% | docs.polymarket.com/ | |
| Funding rate cap | 4% per hour | docs.polymarket.com/ | |
| Who receives funding | the protocol takes no cut | docs.polymarket.com/ |
Keep reading
Perps · 6 min
Polymarket Perps Funding Rate Explained
How the Polymarket Perps funding rate is built from the order book, settled every hour and capped, who pays whom, and what it costs to hold a position.
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PolyTerminal is an independent interface for Polymarket and is not operated or endorsed by Polymarket. Orders placed through PolyTerminal carry PolyTerminal’s Polymarket builder code, and PolyTerminal may charge a builder fee on top of Polymarket’s own fees. This page is educational and is not investment advice. Rules were compared with the official documentation on Oct 19, 2026; check the source before you act on a number.