Workflow for Cross-Exchange Perpetual Funding-Rate Arbitrage

Summary

This workflow seeks to capture differences in perpetual futures funding rates across exchanges by going long where rates are lower and short where they are higher. A collection process gathers rate snapshots, while an execution process scores recent opportunities, checks whether existing positions should be closed, and validates price spread stability and liquidity. It then uses an AI model to rate candidates and suggest trade size before placing both legs, with an attempted rollback if the second leg fails. The document also describes position checks, order confirmation, cost thresholds, and dashboard monitoring.

The proposed return source is the net funding difference after trading friction, but the stated annualized range is an estimate rather than documented backtest evidence. No underlying performance series or methodology supporting that estimate is provided. Results depend on the funding spread persisting long enough to cover fees and execution costs, and on accurate cross-exchange hedging. Legging risk remains if one order fills and the other cannot be established or unwound; exchange liquidity, data quality, and the AI scoring process also require independent validation.

Key ideas

• The strategy pairs a long perpetual position at a lower funding rate with a short at a higher rate.
• Recent rate observations are scored, while price spreads and liquidity are checked before entry.
• Existing positions are monitored for disappeared or directionally changed opportunities.
• The workflow attempts to roll back the first leg if the second leg fails and tracks order fills.
• The document provides no verified performance record, and returns depend on spread persistence and execution costs.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.