Funding Rate Arbitrage Calculator
Delta-neutral · Basis trade · Annualized yield
+ you pay · − you receive
+ you receive · − you pay
Frequently Asked Questions
What is funding rate arbitrage in crypto?
Funding rate arbitrage (also called basis trading) is a delta-neutral strategy where you hold a long perpetual position on one exchange and a short on another to capture the difference in funding rates. Because both legs cancel out directional risk, profit comes purely from the rate spread.
How is annualized yield calculated?
Annualized yield = (Short Rate − Long Rate) × periods per day × 365. For an 8h interval with a 0.07% net rate per period: 0.07% × 3 × 365 ≈ 76.65% APY. The calculator does this automatically for both 8h (standard) and 1h (Hyperliquid) intervals.
What is the transfer fee and when does it matter?
To open the arbitrage you must transfer funds to a second exchange, typically costing 0.05–0.1% of position size. The calculator deducts this from net profit and shows how many days it takes to break even — if breakeven is longer than your intended duration, the trade may not be worth it.
What are the risks of funding rate arbitrage?
The main risks are: (1) funding rates can change or flip negative, (2) liquidation on one leg if the exchange's margin engine moves against you, (3) counterparty risk if an exchange is illiquid or freezes withdrawals. Always size each leg conservatively and monitor both positions.