What problem does it solve?
It helps traders interpret perpetual futures funding rates and spot–futures basis so they can identify crowded positioning, construct delta-neutral carry trades, and detect favorable funding-rate or basis-arbitrage conditions.
Core Features & Use Cases
- Funding rate mechanics & annualization: Converts exchange funding payments (typically per 8h) into annualized rates for consistent regime comparison.
- Funding regime detection & contrarian signaling: Classifies states like overheated long/short crowds and generates directional or contrarian signals based on thresholds and short-term momentum (e.g., consecutive positive/negative periods).
- Spot–perp and cash-carry basis analysis: Computes spot–futures basis (and annualized basis) to categorize contango/flat/backwardation and guide cash-carry vs. wait decisions.
- Delta-neutral carry trade construction: Frames the cash-carry trade as spot long + perp short to harvest funding, including when to exit if funding flips.
- Cross-exchange funding arbitrage logic: Explains how to hedge exposure by shorting the highest-funding venue and long the lowest-funding venue, aiming to capture funding spreads.
Quick Start
Use the perp-funding-basis skill to analyze BTC funding history and current spot–perp premiums across OKX and Binance, then output the implied funding regime and the best carry/arbitrage direction for the next funding cycle.
