Funding rate arbitrage
start with comparable rates
Compare perpetual funding across exchanges in the free Rates table or heatmap. Use Pro Arbitrage to research long/short combinations and Watchlist to follow selected routes.
What is funding rate arbitrage?
Funding is a periodic payment between holders of perpetual futures. At a positive rate, longs pay shorts; at a negative rate, shorts pay longs. The rate and settlement schedule belong to each contract.
A funding arbitrage setup combines a long and a short on the same underlying asset across venues. For equal position notionals over the same period, the gross funding comparison is the short rate minus the long rate. This can be positive even when one leg pays funding.
Opposing positions reduce directional exposure, but the final result also depends on trading fees, slippage, changes in the price gap between the legs, and any borrowing costs. Margin and liquidation risk still exist on each venue.
Venue funding rules: Bybit · Hyperliquid. Check the schedule for the specific contract.
Choose the Funding view for your task
Rates · Free
Search symbols, filter exchanges and compare positive or negative funding in a table or heatmap.
Comparable intervals
Compare rates on an 8-hour basis, then inspect each contract’s native interval and next settlement time.
Arbitrage · Pro
Research long/short routes with the funding differential and entry price gap together. Indicative estimates are not realized net profit.
Historical context
Use available rate history to investigate whether a difference has persisted. Missing history does not establish a stable return.
Watchlist · Pro
Save selected routes and review their available metrics over time in the Funding workspace.
Data freshness
Check the data status and update time in the tool, then verify quotes and contract terms on the exchange before acting.
How to research a funding route
Start with free Rates
Find the same underlying asset on venues you can use. Filter the market and compare rates over the same time period.
Check actual payment timing
An 8-hour equivalent is a comparison scale. Payments still follow each contract’s native schedule, and the quoted rate can change before settlement.
Assess both legs in Arbitrage
In Pro, compare the funding differential with the entry price gap and available history. Check orderbook depth and calculate opening and closing fees, slippage and any borrowing costs for your size.
Plan margin and exit conditions
Allow for funding reversals, a widening price gap and collateral requirements on both venues. A matched long/short pair does not prevent either leg from being liquidated.
Funding rate questions
Which Funding features are free?
Rates is the free default view at /app/funding, with a table, heatmap, search and filters. Arbitrage and Watchlist require Pro. Current subscription terms are available on the Pro page.
Does a negative funding rate mean I should short?
A negative rate means shorts pay longs at settlement. A positive rate means longs pay shorts. Choosing a position also requires checking the other leg, price risk, costs and the contract’s current terms.
Why normalize funding to 8 hours?
Rates for different periods cannot be compared directly. As an arithmetic example, 0.01% per hour corresponds to 0.08% per 8 hours if the rate stays constant. That comparison does not change the exchange’s payment schedule or guarantee eight identical payments.
Is the displayed APR my expected return?
Funding APR annualizes a rate; it is not a forecast or a return on the capital you allocate. Current rates can change, and the result excludes your actual execution costs. Net trading P&L requires funding received or paid, price P&L on both legs and all applicable costs.
Which exchanges and contracts are available?
Use the exchange filters and current results in Rates to see available coverage. Availability varies by venue and contract. Check the data status and each exchange’s contract specifications; an unavailable quote is not a zero funding rate.
Will the Funding tool execute trades?
The Funding views support research and monitoring. Opening a route or saving it to Watchlist does not place exchange orders or open positions.
Guides for funding research
Compare rates, then investigate a route
Start with the free Rates view. Open Arbitrage with Pro when you need to research paired positions, or read the guide to understand the payments and costs first.