Funding Rate
Overview
Boosted positions are structured into two distinct cost components:
The standard Hyperliquid funding rate
A vault borrow cost on borrowed capital
The Hyperliquid funding rate applies to the full notional position size, identical to standard perpetual trading.
The vault borrow cost applies only to the borrowed portion of the margin used to amplify leverage. Both components should be considered when evaluating the total cost of holding a boosted position.
Hyperliquid Funding Rate
Boosted positions participate in the same funding mechanism as all perpetual positions on Hyperliquid.
Funding is exchanged once per hour at the start of each UTC hour between longs and shorts.
A positive funding rate means longs pay shorts
A negative funding rate means shorts pay longs
Funding applies to the full notional value of the position, regardless of whether leverage is boosted.
The current funding rate is displayed:
Per market in the market selector
In the BFR column within the open positions panel
This component is identical to standard perpetual trading behavior.
Vault Borrow Cost
When trading with boosted leverage, additional margin is sourced from Onyx’s vault in the form of borrowed USDC. This borrowed capital carries a fixed annual interest rate.
The vault borrow rate is:
30% APR on borrowed USDC
Interest accrues continuously on a per-second basis according to the following formula:
Interest = principal × (annualRate ÷ 31,536,000) × elapsedSeconds
This borrow cost is applied in addition to the standard Hyperliquid funding rate. It applies only to the borrowed portion of the position, not the trader’s own collateral.
Effective Holding Cost
The total holding cost of a boosted position consists of:
Hyperliquid funding rate, applied hourly on the full notional
Vault borrow APR, applied continuously on the borrowed amount only
To understand:
If a trader opens a BTC long at 100x using $1,000 in margin, and the vault lends $2,600 to amplify exposure, the borrow cost is calculated at 30% APR on the $2,600. This equates to approximately $2.14 per day in borrow interest, applied in addition to any Hyperliquid funding payments charged on the full notional position size.
Assuming an annualized funding rate of 10%, the annual holding cost without borrow is 10%. When incorporating the borrow cost (BFR), the effective annual holding cost increases only marginally to approximately 10.00214%, demonstrating that the borrowing component only marginally changes the effective funding rate.
The borrow rate is variable and may be updated over time; the latest rate is available in the app and through official support channels.
Important Notes
Borrow interest accrues in real time and is reflected in PnL at settlement.
The BFR column in the positions panel displays the Hyperliquid funding rate only. Vault borrow costs are tracked separately.
Users should account for both funding and borrow costs when maintaining boosted positions over longer time horizons.
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