How to Build a Funding Rate Arbitrage Bot with Python

How to Build a Funding Rate Arbitrage Bot with Python A step-by-step guide to earning passive income from cryptocurrency funding rates — with zero directional risk. What is Funding Rate Arbitrage? Perpetual futures contracts have no expiry date. To keep their price aligned with spot, exchanges use a funding rate — a fee paid between longs and shorts every 8 hours. When the market is bullish (most of the time), longs pay shorts. This creates a structural opportunity: go long on spot, short on perpetual, and collect the funding rate with zero price risk. This is called delta-neutral funding rate arbitrage , and it's one of the lowest-risk strategies in crypto. How Much Can You Earn? Based on 2024-2025 data: Asset Avg 8h Rate Annual Return BTC 0.01% ~11% ETH 0.008% ~8.7% Altcoins 0.02-0.05% ~22-55% That's 10-15% annually on a delta-neutral position — significantly better than most savings accounts, with much lower risk than directional trading. The Strategy Scan all perpetual contracts fo