Funding Rate Arbitrage

Funding arbitrage earns yield from perp price misalignments. You:

• LONG on low/negative funding platform

• SHORT on high/positive funding platform → Capture the funding spread

Example: GMX LONG at -0.01%, Hyperliquid SHORT at +0.02% → Net +0.01% every 8h = ~11% APY

Advantages:

• Neutral strategy

• Scalable w/ leverage

• Stable returns

Risks:

• Liquidation

• Desync/slippage

• Funding flips

• Execution issues