Hyperliquid funding rate tax treatment
What funding actually is
On a perpetuals exchange, funding is the recurring payment that tethers the perp price to
the underlying. Every hour, traders on one side of the market pay traders on the other
side, based on the funding rate and position size. On Hyperliquid you can see it plainly in
the data: each entry is a usdc debit or credit, tied to a coin, a rate, and a
position size. It is a cash flow — unlike PnL, it settles in your margin balance whether
you close anything or not.
The two directions get taxed differently
Most frameworks do not treat "net funding" as a single number. Funding received is usually ordinary income-like; funding paid may be a deductible cost or expense — and the answer changes with your jurisdiction and your overall activity classification (investor vs. trader vs. business). That is exactly why our scanner reports funding received and funding paid as separate totals per year and per market, instead of showing one net figure.
Questions to take to your accountant
- Under my classification, is funding received ordinary income, or part of a capital framework?
- Is funding paid deductible against it, and does it need to be matched to specific positions or periods?
- How should funding on positions that later liquidated be treated?
- Do the answers change for USDC-margined perps on a decentralized venue vs. CEX futures?
Getting your funding history out
The public userFunding API returns every funding event with its rate and
position size, and the scanner aggregates it per tax year — try it with your own address
below. Keep in mind funding events are generated by the protocol's ledger rather than
on-chain transactions, so exports reference exchange records rather than transaction hashes.
See your funding paid vs. received, per year
Free, read-only, grouped by market — the exact split your classification will need.
Scan my wallet