Crypto Funding Rate Arbitrage Bot

A funding rate arbitrage bot that captures yield from perpetual futures funding payments while maintaining a delta-neutral position — crypto's closest thing to risk-free return.

Strategy:

• Monitors funding rates across 8+ perps exchanges in real-time
• Identifies extreme funding rate differentials
• Opens opposing positions: long on negative funding, short on positive
• Collects funding payments every 8 hours (or 1 hour on some exchanges)
• Net delta exposure stays near zero — profit comes from funding spread

Supported Exchanges:

• Binance Futures, Bybit, OKX, dYdX
• Bitget, Gate.io, MEXC, BingX
• Hyperliquid (on-chain perps)
• Drift Protocol (Solana perps)

Position Management:

• Auto-sizes based on available margin and target yield
• Monitors unrealised PnL and rebalances if drift exceeds threshold
• Auto-close when funding normalises (spread drops below min threshold)
• Handles exchange-specific funding schedules (8h, 4h, 1h)
• Margin monitoring with auto-deleveraging protection

Risk Controls:

• Maximum position size per pair
• Maximum total exposure across all positions
• Basis risk monitoring (spot vs. futures divergence)
• Exchange counterparty risk limits
• Auto-close on margin utilisation threshold
• Daily profit target and stop-loss

Analytics:

• Historical funding rate data per exchange
• APY calculator based on current rates
• P&L attribution (funding income vs. price PnL)
• Correlation analysis between funding and price

Tech Stack:

• Python 3.11+ with asyncio
• CCXT for multi-exchange connectivity
• Redis for real-time rate caching
• PostgreSQL for trade history
• React dashboard
• Docker Compose deployment