Funding rate arbitrage is a delta-neutral trading strategy that profits from
differences in funding rates across perpetual futures exchanges, without taking directional
market risk.
In perpetual futures markets, traders pay or receive a funding rate every 1 hour (4 or 8 hours
on some exchanges) to keep the perpetual contract price in line with the spot price. If the rate
is positive, longs pay shorts. If the rate is negative, shorts pay longs.
The Strategy:
Open a long position on the exchange with the lowest (or most negative) funding rate
Open an equal-sized short position on the exchange with the highest (or most positive) funding rate
Collect the spread between the two funding rates as profit
Your positions cancel out directionally, so you're market-neutral (no exposure to price movement)
How to Read the Dashboard
The dashboard attempts to identify relatively stable opportunities by averaging funding rates
over time. Note that this tells you how the opportunity has performed over that timeframe in the
past, which is no guarantee for a positive return in the future.
Columns
Hover any column header to see what that column means.
Using the Filters
Ticker: Filter for a specific asset
Timeframe: Choose which averaging period to view
Trend: Filter for widening, stable, or narrowing spreads
Min Spread: Set the minimum annualized spread % to display
Interactive Features
Click Long @ or Short @ to open that leg's exchange trade page for the symbol.
Click any row to open a detailed historical spread chart showing how the funding-rate spread between the two exchanges has evolved over time.
Risk Considerations
⚠️ Important: Funding rate arbitrage is not risk-free. Please understand these risks before trading.
Key Risks
Execution Risk: Prices may move between opening your long and short positions, creating temporary imbalance
Liquidation Risk: If using leverage, one side could get liquidated during volatile price movements despite being hedged
Funding Rate Changes: Funding rates are dynamic and can reverse quickly, turning profitable spreads into losses
Exchange Risk: Counterparty risk, exchange downtime, withdrawal delays, or different margin requirements
Slippage: Large positions may experience slippage when entering/exiting, especially in low liquidity markets
Basis Risk: The perpetual contract prices on different exchanges may diverge temporarily
Capital Efficiency: You need capital on both exchanges, and margin requirements may differ
Best Practices
Start with small position sizes to understand the mechanics
Monitor positions actively - don't set and forget
Keep extra margin buffer on both exchanges for volatility
Consider transaction costs (fees, withdrawals) when calculating profitability
Pay attention to the Min OI column - don't size beyond it
Favor opportunities with stable or widening trends
How Often is Data Updated?
The dashboard data is updated hourly.
Check the "Last Updated" timestamp at the top of the dashboard to see when data
was last refreshed. The timestamp is shown in UTC time.
Note: Funding rates can change quickly in real-time. Always verify current rates on the exchanges before executing trades.
Understanding the Metrics
What is a "good" spread?
Spreads are shown as annualized percentages. Here's a general guide:
10-25%: Good (grey)
25-50%: Great (green)
50%+: Excellent (blue)
Remember to subtract trading fees, withdrawal costs, and funding payment fees when calculating your actual profit.
Why multiple timeframes?
Different timeframes help you understand spread stability:
1d: Shortest term trend
3d: Short-term trend - helps confirm if 1d is an outlier
1w: Medium-term average - indicates more stable opportunities