Funding rate arbitrage guides

Guides to funding rate arbitrage: how it works, how FundingGap calculates net APR, the risks, and a glossary of perpetual futures terms.

• What is funding rate arbitrage?Funding rate arbitrage means holding the same coin long on one exchange and short on another, so price moves cancel out, while you collect the difference between the two funding rates.
• How FundingGap calculates funding APR and net profitEvery number on FundingGap comes from public exchange data and a few simple formulas. This page lists them, so you can check our math and adjust it to your own fees.
• Risks of funding rate arbitrageA long/short funding trade removes most of your exposure to price, but not all of your risk. These are the ways it loses money, roughly in order of how often they happen.
• Funding rate glossaryShort definitions of the terms used on FundingGap and in perpetual futures trading in general.