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Live Funding Rate Heatmap

Real-time funding rates across all supported exchanges. Identify arbitrage opportunities and market sentiment at a glance.

Funding Rate Overview

Currently, funding rates vary significantly across exchanges. Arbitrum-based DEXs like GMX and Hyperliquid generally offer more competitive funding rates compared to Optimism-based venues. BTC perpetuals show funding rates between -0.01% and +0.03% across major exchanges, while ETH perpetuals range from -0.02% to +0.04%. These rates are updated hourly and reflect market sentiment and supply-demand dynamics.

Long positions pay funding when rate is positive, while short positions receive funding. Conversely, when funding is negative, long positions receive and short positions pay. Traders can exploit funding rate differentials across exchanges for arbitrage opportunities.

Funding Rates by Blockchain

Arbitrum

Arbitrum hosts several major DEXs with generally competitive funding rates:

  • GMX: Average funding 0.01-0.02% for major pairs
  • Hyperliquid: Often lowest fees at 0.00-0.01% range
  • ASTERDEX: Competitive rates around 0.015%
  • APEX: Slightly higher at 0.02-0.03%

Summary: Arbitrum generally offers the lowest funding rates across all chains, making it ideal for cost-effective long-term positions.

Optimism

Optimism DEXs typically have higher funding rates:

  • dYdX: Average 0.02-0.04% for BTC/ETH
  • Synthetix: Variable rates, often 0.03%+

Summary: Higher funding rates may indicate greater demand for long positions or lower liquidity supply. Consider this when planning longer-term trades.

Solana

Solana DEXs offer unique funding dynamics:

  • Drift Protocol: Rates typically 0.01-0.025%
  • Mango Markets: Variable, often 0.02-0.04%

Summary: Solana's fast settlement allows for more frequent funding intervals, reducing per-hour costs for some strategies.

Understanding Funding Rates

What are Funding Rates?

Funding rates are periodic payments exchanged between long and short traders in perpetual futures markets to keep the perpetual price close to the spot price. They are calculated every 8 hours on most exchanges and are paid based on the difference between the perpetual and index prices.

How to Read Funding Rates

  • Positive Funding (+0.01%): Longs pay shorts. Indicates bullish sentiment or more long positions than shorts.
  • Negative Funding (-0.01%): Shorts pay longs. Indicates bearish sentiment or more short positions than longs.
  • Zero Funding (0.00%): No payment. Perpetual price equals spot price. This is the equilibrium state.

Trading Strategies Using Funding Rates

1. Delta Neutral Funding Arbitrage: Open equal-sized long and short positions on different exchanges with different funding rates. Profit from the funding rate differential without taking directional exposure.

2. Funding Rate Farming: Monitor negative funding rates on exchanges with strong perpetual markets. Go long when funding is negative to earn the funding payment.

3. Cross-Exchange Basis Trading: Buy spot on one exchange and sell perpetual on another when the basis (futures-spot spread) exceeds funding costs. Lock in risk-free profits.

Frequently Asked Questions

Which exchange has the lowest funding rates?

Hyperliquid and GMX on Arbitrum typically offer the lowest funding rates, often in the 0.00-0.01% range. However, rates change based on market conditions. Use ourcomparison tools to find current best rates for your desired trading pair.

How often are funding rates paid?

Most exchanges calculate and charge funding rates every 8 hours. However, some like Hyperliquid use hourly intervals. The rate is prorated if you enter or exit a position between funding periods. Tetrac aggregates funding data from all exchanges with different calculation methods.

Can I profit from funding rate differences?

Yes, funding rate arbitrage is a popular strategy. By opening positions on exchanges with significantly different rates, you can earn the differential without directional risk. However, consider transaction costs, exchange risks, and liquidation potential. Our platform makes it easy to compare rates across venues to identify arbitrage opportunities.

What is a good funding rate?

Generally, funding rates between -0.01% and +0.01% are considered normal market conditions. Rates above +0.05% may indicate overheated bullish sentiment, while rates below -0.05% suggest excessive bearish positioning. Both extremes can signal potential reversals but also carry increased risk of forced liquidations.

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