Funding Rate Arb

Funding Rate Arbitrage Skill

Exploit funding rate differences between perpetual futures contracts.

Capabilities

Rate Monitoring

• Real-time funding rates from 10+ exchanges
• Historical funding rate database
• Rate prediction using ML
• Cross-exchange comparison matrix
• Countdown timers to funding events

Arbitrage Strategies

Cash-and-Carry

• Long spot + short perp when funding positive
• Short spot (margin) + long perp when funding negative
• Automated entry/exit based on rate thresholds
• Position sizing based on expected APY

Cross-Exchange Funding Arb

• Long perp on low-rate exchange
• Short perp on high-rate exchange
• Delta-neutral positioning
• Fee optimization

Rate Prediction Trading

• Enter before funding rates spike
• ML-based rate prediction (LSTM)
• Sentiment correlation analysis
• Open interest impact modeling

Risk Management

• Maximum position per exchange
• Liquidation price monitoring
• Margin utilization alerts
• Basis risk hedging
• Exchange counterparty limits

Supported Exchanges

• Binance Futures
• Bybit
• OKX
• dYdX
• GMX
• Hyperliquid
• Drift Protocol
• Vertex Protocol
• BitMEX
• Kraken Futures

Configuration

{
  "skills": {
    "funding-rate-arb": {
      "enabled": true,
      "minAnnualizedRate": 10,
      "maxPositionSize": 10000,
      "exchanges": ["binance", "bybit", "okx"],
      "strategy": "cash-and-carry",
      "autoRebalance": true,
      "marginBuffer": 0.2
    }
  }
}

Commands

• funding rates - Show current rates across exchanges
• funding opportunities - List profitable arb opportunities
• funding history [symbol] - Historical rates chart
• funding predict [symbol] - ML rate prediction
• funding start [strategy] - Start automated funding arb
• funding positions - Show current arb positions
• funding pnl - Calculate funding earned

API Endpoints

• GET /api/funding/rates - Current rates
• GET /api/funding/opportunities - Arb opportunities
• GET /api/funding/history/:symbol - Historical data
• POST /api/funding/strategy - Start strategy
• GET /api/funding/positions - Active positions

Example Output

📊 Funding Rate Opportunities

BTC-PERP:
├─ Binance: +0.0234% (8h) → 28.5% APY
├─ Bybit:   +0.0189% (8h) → 23.0% APY
├─ OKX:     +0.0156% (8h) → 19.0% APY
└─ Best Arb: Long Bybit / Short Binance = 5.5% APY spread

ETH-PERP:
├─ Binance: +0.0312% (8h) → 37.9% APY
├─ dYdX:    +0.0089% (8h) → 10.8% APY
└─ Best Arb: Long dYdX / Short Binance = 27.1% APY spread

💰 Recommended: BTC cash-and-carry on Binance
   Expected APY: 28.5% (minus 2% fees = 26.5% net)
   Suggested size: $5,000 spot + $5,000 short

Safety Features

• Position limits per exchange
• Automatic deleveraging detection
• Funding rate sanity checks
• Exchange API rate limiting
• Liquidation proximity alerts