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Funding Rate Arbitrage Guide: Cash-and-Carry for Perps

A practical funding arbitrage primer: when it works, how to estimate net carry, and the common pitfalls that turn positive funding into losses.

Published 2026-02-12 · 8 min read

Funding rate arbitrage (cash-and-carry for perps)

The idea: when funding is consistently positive, hedge spot vs perp to capture the funding payments. The real question is net carry after fees, basis, and slippage.

  • Estimate net carry: funding − fees − basis
  • Use low-fee venues and avoid thin books
  • Close positions before high-risk events

Common pitfalls

  • Funding flips quickly in trend reversals
  • Fees eat small carry edges
  • Liquidation risk on the perp leg

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