# Funding Rate Arbitrage

<figure><img src="/files/Zb1vbFgwP4oACaLdBm4C" alt=""><figcaption></figcaption></figure>

#### What Is Funding Rate Arbitrage?

Perpetual contracts use periodic funding payments to keep contract prices anchored to spot. When two venues show different funding rates for the same asset, a market-neutral opportunity exists:

* **Go long** on the venue paying you to hold the position (negative funding rate)
* **Go short** on the venue where you pay less (lower positive rate)
* **Earn the spread** while remaining delta-neutral

#### Example — BTC Funding Scenario

| Venue   | Funding Rate           | Your Position | Outcome             |
| ------- | ---------------------- | ------------- | ------------------- |
| Venue A | +0.05% (longs receive) | Long          | Receive funding     |
| Venue B | -0.03% (shorts pay)    | Short         | Pay funding         |
| **Net** | **+0.02% per period**  | —             | **Profit = spread** |

#### How to Execute on Mozi

<figure><img src="/files/co0G0PD52Tj3ERnMUNUG" alt=""><figcaption></figcaption></figure>

**Step 1 — Set Position Size** Choose from preset sizes (1,000 / 10K / 100K USDC) or enter a custom amount. Filter by venue (Hyperliquid, Lighter, Aster) and asset type.

**Step 2 — Select an Opportunity** The Funding Strategies dashboard displays real-time opportunities ranked by spread. Click **Trade** on any row to open the execution panel.

**Step 3 — Configure Execution** Review the pre-filled long and short legs, position sizes, and estimated collateral requirements.

**Step 4 — Review Estimates** Confirm projected funding yield, required margin, and estimated net return before proceeding.

**Step 5 — Place Order** Click **Place Order** to execute both legs simultaneously.

Both positions are opened in a single transaction flow — no manual coordination between venues.

> All strategies are non-custodial. Positions remain under user control at all times.


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