How arbitrage works

A funding arbitrage is long a perp on one venue and short the same asset on another. Price moves cancel. What remains is the funding difference, minus the cost of getting in and out.

The trade

long  BTC on venue A  (pays  0.002%/h)
short BTC on venue B  (earns 0.010%/h)
net carry             +0.008%/h  on each leg's notional

On $10,000 per leg that is $0.80 an hour, $19.20 a day, before costs.

What decides if it is worth it

Factor	Why it matters
Entry and exit cost	Fees plus the spread you cross on four fills. On $10,000 per leg, a taker round trip can cost tens of dollars.
How long the spread lasts	Funding spreads often decay within hours. The trade has to earn back its cost first.
Depth	A spread that only exists for $1,000 doesn't pay at $50,000
Basis	The two venues' prices can differ at entry and at exit

The board measures all of these. See Reading the board.

Risks

• Liquidation. Each leg is a margined perp. A sharp move can liquidate one leg before the other. Keep leverage low.
• One-sided fills. If one leg fills and the other doesn't, you hold a directional position until you fix it.
• Funding flips. Rates change every interval. A spread can close or reverse.

Order flow: every order is recorded before it is sent, each venue is read before acting, and fills are reconciled against the venue.