What is funding arbitrage?

Earning the funding rate without price risk: opposite positions in the same coin on two venues, collecting the difference in funding.

Funding arbitrage is a delta-neutral strategy. If longs pay a high funding rate on one exchange, a trader opens a short there and an equal long elsewhere (another exchange or spot). Price moves cancel out, and the funding difference remains as income.

The risks are in the details: fees on entry and exit, rates that change every hour, and liquidation of one leg during a sharp move if the leverage is too high.

On HyperScan

The funding table compares Hyperliquid with Binance and Bybit and shows the spread in APR — the gap an arbitrageur would earn.