> For the complete documentation index, see [llms.txt](https://docs.paragon.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paragon.trade/trading/fees.md).

# Fees

Paragon follows the HIP-3 fee structure on Hyperliquid. All fees are transparent with no hidden costs.

## Trading Fees

Paragon markets follow Hyperliquid's standard fee schedule. Fees are charged per trade based on whether you add or remove liquidity (maker vs taker), with reduced rates for high-volume traders.

→ [Hyperliquid Fee Schedule](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/fees)

## Fee Distribution

Under HIP-3, trading fees are split between the protocol and the underlying infrastructure.

| Recipient        | Share |
| ---------------- | ----- |
| Paragon Protocol | 50%   |
| Hyperliquid      | 50%   |

## Funding Rates

Perpetual futures use funding rates to keep prices aligned with the underlying index. Funding is exchanged between long and short positions at regular intervals.

| Condition                       | Who pays         |
| ------------------------------- | ---------------- |
| Positive funding (perp > index) | Longs pay shorts |
| Negative funding (perp < index) | Shorts pay longs |

Each market sets a **funding multiplier** that scales its funding rate — values below 1 dampen funding relative to the raw basis. Per-market values are listed in the [market specifications](/markets/specifications.md#market-specifications); the underlying funding mechanism follows Hyperliquid's.

For equities, the multiplier is set so perpetual carry tracks how the underlying is financed in traditional markets — nearer to short-term benchmark rates such as SOFR plus a modest spread than to crypto's higher baseline. It also softens funding during weekends and off-hours, when the underlying is not trading.

Current funding rates are displayed on the trading interface.

→ [Hyperliquid Funding Rates](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/funding)

## No Hidden Fees

| Fee Type            | Cost |
| ------------------- | ---- |
| Deposits            | Free |
| Withdrawals         | Free |
| Account maintenance | Free |
| Inactivity          | Free |

The only costs are trading fees and funding rate payments.


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