funding-rate-trading

Name: funding-rate-trading
Author: SKE-Labs

15stars2forks

How to install funding-rate-trading?

ske-labs/agent-trading-skills/funding-rate-trading

$npx -y skills add SKE-Labs/agent-trading-skills --skill funding-rate-trading

Installs into the current project.

Summary

Evaluate venue-specific perpetual funding, basis, and delta-neutral carry. Use when normalizing funding history, stress-testing hedge/margin/exchange risks, or testing contrarian funding features.

Files · 1

View on GitHub

SKILL.md

1	# Funding Rate Trading
2
3	Perpetual futures use venue-specific funding mechanisms to influence alignment with spot. Funding and basis can support carry or directional hypotheses, but neither is an arbitrage guarantee or standalone signal.
4
5	## Funding Rate Basics
6
7	- Positive funding: Longs pay shorts (market is bullish/overleveraged long)
8	- Negative funding: Shorts pay longs (market is bearish/overleveraged short)
9	- Interval, formula, caps, and settlement are venue-specific. Read the current contract specification before annualizing.
10
11	## Funding Rate Signals
12
13	\| Observation \| What it establishes \| What it does not establish \|
14	\| --- \| --- \| --- \|
15	\| Positive funding \| Longs pay shorts for that interval \| Imminent reversal \|
16	\| Negative funding \| Shorts pay longs for that interval \| Market bottom \|
17	\| Persistent extreme percentile \| Crowded carry relative to venue history \| Safe contrarian entry \|
18	\| Wide perp/spot basis \| Hedge and funding demand \| Guaranteed convergence \|
19
20	## Strategies
21
22	1. Funding Rate Arbitrage (Delta Neutral)
23	- Long spot + short perp when funding is highly positive
24	- Collect funding payments while market-neutral
25	- Annualized simple rate = interval rate × actual intervals per year; also report compounded and realized rates separately
26	- Enter only when stressed net carry remains positive after fees, basis moves, rebalancing, margin, and custody costs
27
28	2. Extreme Funding Reversal Hypothesis
29	- Define extremes by the same venue/contract's historical percentile and test positive/negative tails separately.
30	- Require an objective price trigger and stress continued crowding; do not wait for or assume a liquidation cascade.
31
32	3. Funding as Confirmation
33	- Use funding direction to confirm or reject a technical setup
34	- Test whether funding adds information beyond price-derived features such as RSI
35
36	## Workflow
37
38	1. Get current funding rate data:
39	```
40	get_financial_news(topic="BTC perpetual funding rate Binance Bybit")
41	```
42
43	2. Check spot price and momentum:
44	```
45	get_candles(symbol="BTC/USD", exchange="binance", interval="4h", count=1)
46	get_indicators(indicator_code="rsi", symbol="BTC/USD", exchange="binance", interval="4h")
47	```
48
49	3. Assess futures-spot premium:
50	```
51	get_financial_news(topic="BTC futures premium spot basis")
52	```
53
54	4. Calculate net carry from the venue's actual interval and historical realized rates. Stress a funding flip, spot/perp basis widening, hedge mismatch, and liquidation on either leg.
55
56	5. Report: funding regime (extreme/normal), sentiment implication, arb APR if applicable, and any contrarian trade setup with technical confirmation.
57
58	## Evidence and Validation
59
60	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
61	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
62	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
63	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
64	- Research basis: [Coinbase's funding documentation](https://help.coinbase.com/en/coinbase/derivatives/funding-rate) shows that interval, annualization, caps, and settlement are venue-specific; [perpetual-futures research](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301150) documents basis and trading-cost bounds.
65
66	## Key Rules
67
68	- Use a predeclared persistence window and the contract's actual interval; never assume an 8-hour schedule.
69	- Monitor funding, basis, hedge error, collateral, and liquidation state throughout the position.
70	- Extreme funding can persist or flip; estimate conditional outcomes rather than predicting a cascade.
71	- Same-venue legs reduce transfer latency but concentrate exchange and collateral risk; cross-venue legs introduce transfer and basis risk
72
73	## Related Skills
74
75	- arbitrage-trading -- funding arb is a specific delta-neutral arbitrage strategy
76	- on-chain-analysis -- exchange flow data confirms leverage buildup behind funding extremes

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funding-rate-trading

15stars2forks

View on GitHub

How to install funding-rate-trading?

ske-labs/agent-trading-skills/funding-rate-trading

$npx -y skills add SKE-Labs/agent-trading-skills --skill funding-rate-trading

Installs into the current project.

Summary

Evaluate venue-specific perpetual funding, basis, and delta-neutral carry. Use when normalizing funding history, stress-testing hedge/margin/exchange risks, or testing contrarian funding features.

Files · 1

View on GitHub

SKILL.md

1	# Funding Rate Trading
2
3	Perpetual futures use venue-specific funding mechanisms to influence alignment with spot. Funding and basis can support carry or directional hypotheses, but neither is an arbitrage guarantee or standalone signal.
4
5	## Funding Rate Basics
6
7	- Positive funding: Longs pay shorts (market is bullish/overleveraged long)
8	- Negative funding: Shorts pay longs (market is bearish/overleveraged short)
9	- Interval, formula, caps, and settlement are venue-specific. Read the current contract specification before annualizing.
10
11	## Funding Rate Signals
12
13	\| Observation \| What it establishes \| What it does not establish \|
14	\| --- \| --- \| --- \|
15	\| Positive funding \| Longs pay shorts for that interval \| Imminent reversal \|
16	\| Negative funding \| Shorts pay longs for that interval \| Market bottom \|
17	\| Persistent extreme percentile \| Crowded carry relative to venue history \| Safe contrarian entry \|
18	\| Wide perp/spot basis \| Hedge and funding demand \| Guaranteed convergence \|
19
20	## Strategies
21
22	1. Funding Rate Arbitrage (Delta Neutral)
23	- Long spot + short perp when funding is highly positive
24	- Collect funding payments while market-neutral
25	- Annualized simple rate = interval rate × actual intervals per year; also report compounded and realized rates separately
26	- Enter only when stressed net carry remains positive after fees, basis moves, rebalancing, margin, and custody costs
27
28	2. Extreme Funding Reversal Hypothesis
29	- Define extremes by the same venue/contract's historical percentile and test positive/negative tails separately.
30	- Require an objective price trigger and stress continued crowding; do not wait for or assume a liquidation cascade.
31
32	3. Funding as Confirmation
33	- Use funding direction to confirm or reject a technical setup
34	- Test whether funding adds information beyond price-derived features such as RSI
35
36	## Workflow
37
38	1. Get current funding rate data:
39	```
40	get_financial_news(topic="BTC perpetual funding rate Binance Bybit")
41	```
42
43	2. Check spot price and momentum:
44	```
45	get_candles(symbol="BTC/USD", exchange="binance", interval="4h", count=1)
46	get_indicators(indicator_code="rsi", symbol="BTC/USD", exchange="binance", interval="4h")
47	```
48
49	3. Assess futures-spot premium:
50	```
51	get_financial_news(topic="BTC futures premium spot basis")
52	```
53
54	4. Calculate net carry from the venue's actual interval and historical realized rates. Stress a funding flip, spot/perp basis widening, hedge mismatch, and liquidation on either leg.
55
56	5. Report: funding regime (extreme/normal), sentiment implication, arb APR if applicable, and any contrarian trade setup with technical confirmation.
57
58	## Evidence and Validation
59
60	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
61	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
62	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
63	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
64	- Research basis: [Coinbase's funding documentation](https://help.coinbase.com/en/coinbase/derivatives/funding-rate) shows that interval, annualization, caps, and settlement are venue-specific; [perpetual-futures research](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301150) documents basis and trading-cost bounds.
65
66	## Key Rules
67
68	- Use a predeclared persistence window and the contract's actual interval; never assume an 8-hour schedule.
69	- Monitor funding, basis, hedge error, collateral, and liquidation state throughout the position.
70	- Extreme funding can persist or flip; estimate conditional outcomes rather than predicting a cascade.
71	- Same-venue legs reduce transfer latency but concentrate exchange and collateral risk; cross-venue legs introduce transfer and basis risk
72
73	## Related Skills
74
75	- arbitrage-trading -- funding arb is a specific delta-neutral arbitrage strategy
76	- on-chain-analysis -- exchange flow data confirms leverage buildup behind funding extremes

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6 picks

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