Funding Rate Arbitrage Calculator
Buy spot, short the perpetual in equal size, and collect funding while price can't move against you. This estimates the delta-neutral carryafter fees — one of the few crypto edges that isn't just a directional bet.
Models the classic delta-neutral carry: buy spot, short the perpetual in equal size, and collect funding while prices can't move against you. Four fills total (open + close, both legs).
Net profit over 30 days
$37.00
≈ +9.0% annualized on capital
Worked examples
$5,000 per leg, 0.04% fee per fill — from the calculator above:
Normal funding
0.01% / 8h · held 30 days
+$37
≈ 9% APR
Typical positive funding clears fees with a modest, real carry.
Hot market
0.03% / 8h · held 30 days
+$127
≈ 31% APR
When leverage demand spikes, funding fattens — but so does reversal risk.
Low funding, short hold
0.005% / 8h · held 7 days
−$2.75
≈ −3% APR
Thin funding over a week can't cover four sets of fees. It loses.
The honest caveats
Delta-neutral doesn't mean risk-free. Funding rates flip negative when the market leans short — then you pay instead of collect. The short-perp leg needs margin and can be liquidatedon a sharp move if you're under-collateralized, and you're exposed to each exchange's solvency. Real carry is modest (often high single digits to low double digits annualized in calm markets), and the eye-popping APRs only appear in frothy conditions that don't last. It's a genuine edge, not a money printer.
You'd run this on exchanges that offer both spot and perps — see the exchanges we rate.
FAQ
What is funding rate arbitrage?
Holding a long spot position and an equal short perpetual-futures position, so price moves cancel out (delta-neutral). When perp funding is positive, shorts get paid by longs — you collect that funding as your return.
Is funding arbitrage risk-free?
No. Funding can turn negative (you pay), the short leg can be liquidated on a sharp move if under-margined, and you carry exchange-solvency risk. It removes directional risk, not all risk.
What return can I realistically expect?
In calm markets, often high-single-digit to low-double-digit annualized after fees. The 30%+ figures only show up briefly when leverage demand is extreme — don't annualize a hot week and assume it lasts.
Estimates only, assuming funding stays constant and ignoring slippage, margin, and liquidation. Crypto is volatile and not FDIC-insured. Not financial advice.