STRATEGY 03•Difficulty: Low
Funding Arbitrage
Collect funding payments by holding a delta-neutral position. Buy spot, short futures on an exchange with high positive funding rate. Passive income strategy.
How It Works
LEG A — Any Exchange
BUY Spot
Hold asset
LEG B — High Funding
SHORT Futures
Collect funding
Example — SOL with 0.08% funding/8h:
Position size$10,000
Funding rate0.08% / 8h
Daily funding (3x)$24
Annual APR~87%
Why It Works
- Positive funding = longs pay shorts
- Spot position hedges price risk
- Profit regardless of price direction
Best Conditions
- →High positive funding rates (>0.05%/8h)
- →Stable or trending markets
- →Low volatility periods
Key Parameters
- Min Funding Rate
- 0.03%+/8h
- ~33% APR minimum
- Leverage
- 1–3x
- Conservative for long holds
- Hold Time
- Hours–Days
- Until funding drops
- Risk Level
- Low
- Delta-neutral
Top Funding Opportunities
42 active
| Asset | Exchange | Funding/8h | APR | Next Payment | Execute |
|---|---|---|---|---|---|
| SOL/USDT | Bybit | +0.08% | 87% | 2h 14m | Enter |
| DOGE/USDT | Bybit | +0.06% | 65% | 2h 14m | Enter |
| PEPE/USDT | KuCoin | +0.05% | 54% | 2h 14m | Enter |
| WIF/USDT | Binance | +0.04% | 43% | 2h 14m | Enter |
Risks & Considerations
Funding Rate Reversal
Funding can flip negative, meaning you pay instead of receive.
Safeguard: Monitor funding trends, exit before reversal.
Basis Risk
Spot and futures prices can diverge temporarily.
Safeguard: Use low leverage, maintain margin buffer.