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JOJO's Funding Rate Arbitration

What are the funding rate and funding rate Arbitration?

The funding rate is used to maintain price equilibrium in perpetual contract trading. It levies a fee on long or short traders based on the difference between the perpetual contract market and the spot price. This fee ensures that the price of perpetual contracts remains aligned with the spot index price. The funding rate is considered to be significant for two reasons:
  • Determine the market sentiment of long and short positions
  • Provide risk-free long-term arbitrage opportunities
For more details on the JOJO funding rate, please refer to this article: JOJO Funding Rate Mechanism.

Advantages of JOJO Funding Rate Arbitrage Products

  • Stability of Returns: JOJO's funding rate arbitrage products generate stable returns through the automated execution of trading strategies.
  • Convenience: Users only need to deposit funds into the JOJO platform to enjoy the automated funding rate arbitrage service without the need for complex calculations and operations.
  • Efficiency: By utilizing the differences in funding rates, JOJO can trade between perpetual contracts, futures markets, and spot markets, enabling efficient arbitrage operations.
  • High APY: Aside from funding rate arbitrage profits in perpetual contract trading, there are also basis profits (the price difference between spot and futures).