# Funding arbitrage Use the funding arbitrage workflow when you want to compare perpetual funding rates across exchanges and identify where long / short funding spreads may exist. The [Funding](/features/funding-rates-and-perp-opportunities.md) tab shows rates, open interest, volume, and max-arb direction so you can decide whether a spread is worth deeper review. ## When to use it Use this workflow when: * Funding rates differ meaningfully across venues. * A market has enough open interest and volume to support your size. * You can trade both sides of the proposed long / short setup. * You want to understand funding cost before holding a perp position. Treat annualized projections as a comparison tool, not a promise. ## Tabs to open

Step	Open this	Why
Detect	Funding	Compare rates, volume, open interest, and max-arb direction.
Configure	Funding settings	Limit calculations to exchanges you can actually trade.
Validate	Compare and Chart	Check relative price movement and trend context.
Execute	Terminal	Manage the Hyperliquid side of the trade.
Monitor	Positions and Funding history	Track exposure and funding payments.

## What to validate Before using a funding spread: * Confirm both venues are available to you. * Check whether the spread remains after exchange fees and Proliquid builder fees where applicable. * Confirm the market has enough liquidity for your size. * Review basis and price movement between venues. * Check whether funding is stable or only briefly dislocated. * Review margin requirements on both sides. ## Order types that fit

Situation	Order type
You need to establish the Hyperliquid leg quickly	Market
You want passive entry on the Hyperliquid leg	Limit or Chase
You are entering a larger position over time	TWAP
You want to split aggressive execution while reducing single-order impact	Burst

If the non-Hyperliquid leg is required, execute and monitor it on the relevant external venue. ## What to monitor afterward After entering: * Watch [Positions](/terminal-sections/positions.md) for exposure, PNL, margin, and funding projections. * Review [Funding history](/terminal-sections/funding-history.md) for actual payments. * Re-check [Funding](/features/funding-rates-and-perp-opportunities.md) to confirm the spread still exists. * Reassess when funding flips, liquidity dries up, or one side cannot be maintained. ## Common mistakes * Treating annualized funding as stable. * Forgetting that arbitrage requires both legs to be executable. * Ignoring fees, slippage, borrow constraints, or venue-specific requirements. * Holding the Hyperliquid side after the other side is closed. * Leaving stale exchange selections enabled in Funding settings. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.proliquid.xyz/workflows/funding-arbitrage.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.