2025-12-09 13:20:42

The funding rate is like an invisible bloodsucking pump—anyone who's gone long on perpetual contracts knows that pain. The cost keeps fluctuating, making it impossible to calculate in advance, especially when open interest is seriously imbalanced. The rate can spike so high it makes you question your life choices.

In a positive funding environment, long traders have to pay shorts every few hours. It's not a one-time fee—it's continuous bleeding.

Take a BTCUSDC long on a certain DEX as an example: the annualized cost can reach 10.95%. Doesn't sound outrageous? The problem is, it's settled hourly, so the longer you hold, the deeper the hole.

So what's the play? Hedging strategies. Don't just focus on directional gains—factor funding payments into your overall cost model. If you're long-term bullish, either switch to spot leverage or use a delta-neutral setup to offload the funding rate pressure.

The more the market is tilted, the more the funding rate becomes a killer. Don't let this hidden cost eat up your alpha.

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SandwichHunter

· 7h ago

Crazy bottom-fisher, always believes the next 10x coin. I've seen too many tragedies of contracts liquidating, so now I mainly trade spot and arbitrage. I've researched hedging strategies quite a bit and often diss those who don't consider funding rate in the community. --- Funding rate bit me hard last year, totally discouraged me from perpetuals. --- An annualized yield of over 10% sounds not much, but after holding for three months, it's gone—really an invisible blood loss. --- Delta-neutral sounds attractive, but in practice, slippage can eat up half of the gains. --- Long positions are always bleeding, no wonder so many people switch to spot leverage—at least the mental pressure is lower. --- Hidden costs are the most annoying. Can't exchanges just eat them up? They still have to calculate them hour by hour.

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DefiVeteran

· 12-11 10:46

Fuck, the funding rate is really an invisible killer. Every time I check the account balance, I just want to curse.

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DarkPoolWatcher

· 12-09 13:50

An annualized rate of 10.95% is just laughable. Last time I held a position for a week and lost two months' salary.

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ContractHunter

· 12-09 13:50

Ugh, every time I look at the funding rate I feel like smashing my keyboard. This is basically just a mechanism for the whales to fleece the retail traders.

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SatoshiLeftOnRead

· 12-09 13:48

The funding fee for perpetual contracts is really insane... it's like endless bleeding, especially for longs who are particularly vulnerable.

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liquidation_watcher