Hold the same coin on two exchanges, short where funding is higher and long where it is lower (delta-neutral), and the price moves cancel out, leaving the funding-rate gap. Enter your capital, each exchange's rate and settlement interval, the days held and the leverage, and this works out what you receive and what is left after costs. It simply multiplies what you enter, as if the rates stayed the same for the whole period — it is not a forecast.
Example: short on Extended (+0.0013% every 1h), long on Lighter (−0.0007% every 1h), $20,000 of capital, 1x, 30 days. Changing the inputs needs JavaScript.
Result
Check the inputs (leverage 1-10, days 1-365, rates and costs as numbers).
- Each side
- $10,000
- Received per day
- +$5
- Received over 30 days
- +$144
- Cost to open and close
- −$6
- Net
- +$138
- Annual rate (received only, simple)
- +8.8%
- Annual rate after costs
- +8.4%
- Cost recovery
- about 1.2 daysnot recovered (what you receive is not positive)
- Price move to liquidation
- short, price up 94.2%
long, price down never
Questions we are asked
How is the amount received from a funding rate arbitrage worked out?
Each side's amount × (the sell side's rate × settlements per day − the buy side's rate × settlements per day) × days held.
Each side's amount is half your capital times the leverage (capital is the total for the sell and buy sides). Settlements per day is 24 divided by the settlement interval in hours. The rate is the one the exchange publishes for each settlement.
One exchange settles every hour and the other every eight. How do I compare them?
Turn both into a daily figure before taking the difference.
0.001% every hour is 24 settlements a day, 0.024%; 0.01% every eight hours is 3 a day, 0.03%. The calculator multiplies each rate by its own settlements per day before subtracting.
How many days until the costs are recovered?
The cost to open and close divided by what you receive per day.
If what you receive is not positive, the cost is never recovered. The cost is the exchange fees, the gap between the buying and selling price, and the price slip when an order fills; today's measured costs are for a $10,000 order on each side, and a larger amount slips more.
What changes when I raise the leverage?
Each side grows, so what you receive and the costs grow by the same proportion — and the price move to liquidation shrinks.
The two sides sit on different exchanges, so if one is liquidated only the other remains and the hedge is gone. Keep margin on each exchange.