Cross-Exchange Funding Arbitrage

Funding rates are periodic payments between longs and shorts on perpetual futures exchanges. When funding is positive, longs pay shorts. When negative, shorts pay longs.

Because different exchanges have different user bases and liquidity profiles, funding rates can diverge significantly — sometimes by 10-20%+ annualized.

The simplest arbitrage: open a long on the exchange with lowest funding and a short on the exchange with highest funding. Your net position is neutral, but you collect the funding difference.

Buildix shows cross-exchange funding for every pair — Hyperliquid vs Binance vs Bybit side by side. When you see a large spread, that's an arbitrage opportunity.