Funding Rate Arbitrage

Rate → annualized APR + delta-neutral arbitrage estimate

What is the Funding Rate Arbitrage?

The Funding Arbitrage Calculator models the delta-neutral cash-and-carry: hold spot while shorting an equal perp position to collect funding paid by longs, annualized from the current rate.

How do I use the Funding Rate Arbitrage?

In bull phases with persistently positive funding, annualized yields have episodically hit 15–40% — a relatively low-risk market-neutral return. Keep both legs strictly equal and hold margin buffer on the short leg against squeezes.

What should I watch out for?

Funding can flip negative (you pay), and the real risks are operational — leg mismatch, short-leg liquidation on wicks, exchange risk. The APR shown extrapolates the current rate; it is not a guaranteed yield.

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