The Funding Rates Trader Checklist

This checklist walks you through every step required to build a delta-neutral position and earn funding rate yields with DegenWings, making sure nothing is left to chance.

• Identify an opportunity in Market View.

• Check Exchange History (button at the top of the Market View page) to see the lowest negative funding rate reached recently, so you can set a sensible funding-based exit.

• Make sure the market is not listed in Risky Markets. If it is, evaluate whether acceptable stop-loss levels can be placed.

• If the market appears on the Arbitrage page, set a take-profit level that is consistent with recent price movements.

• If you want to check whether there have been significant spot/futures price discrepancies in recent weeks, use TradingView with the format EXCHANGE:COIN/EXCHANGE:COIN.P (e.g. BYBIT:BTCUSDT/BYBIT:BTCUSDT.P).

• Once you’ve decided on the trade, calculate the spread cost using the calculator by entering the Ask price for the spot market and the Bid price for the futures market.

• Pause the DegenWings bot.

• Set the leverage mode to Isolated.

• Choose a leverage level appropriate for the asset’s recent volatility. (Explanation video here)

• Enter the position while monitoring the order book, aiming to get the best possible execution price.

• Open the position in small increments to minimize slippage and reduce the impact of potential execution mistakes.

It is generally recommended to use Market orders instead of Limit orders, to avoid having a limit order filled during a sharp price movement that leaves you with a poor entry price. (Explanation video here)

• Once the delta-neutral position has been established (the same amount bought on the Spot market and sold short on the Futures market), start the DegenWings bot.

• Find your liquidation price and place one or more stop-loss orders before liquidation. (Video here)

At this point, all that’s left is to let your position accumulate funding fees.

The DegenWings  dashboard provides an overview of your portfolio. For the most accurate, real-time updates, we recommend monitoring your exchange account directly.

Since this is a passive yield strategy, there is no need to constantly monitor your positions, although it’s always good practice to stay aware of what’s happening in your portfolio.

DegenWings will protect your positions from unwanted events and, if the option is enabled, will send you an email whenever the funding rate turns negative.

Learn more about how DegenWings works here.