Core Strategy

Exchange A (Long) and Exchange B (Short) positions are opened with equal notional sizes.

The bot pays or receives funding every 8 hours (or exchange-specific interval).

Net profit is realized when the positive funding side exceeds the negative side plus the trading costs.

Example

If Exchange A has a +0.05% funding rate and Exchange B has −0.01%, the bot earns 0.06% on notional exposure per interval while maintaining zero directional risk.

Risk Control

• Delta balance: constant monitoring to ensure exposure deviation <0.5%.

• Auto-exit: positions closed if funding turns negative or volatility spikes.

• Spread protection: only executes if bid–ask spread < threshold.