Funding Rates · Market Structure

The Perpetual Carry Trade: Extracting Yield from Funding Rate Dynamics

February 2026 · 8 min read · Atman Capital Research

Perpetual futures exchange a payment between long and short holders every 8 hours. When the perpetual trades at a premium to spot, longs pay shorts — creating a persistent, harvestable yield for market-neutral traders.

The funding rate is a tax on directional traders — and a yield for those willing to be market neutral.

The Structural Edge

Over long periods, crypto perpetuals have traded at a persistent premium to spot. Retail and leveraged longs consistently outweigh shorts, generating positive funding rates for delta-neutral strategies on Binance and OKX.

Why 80/20?

80% funding arbitrage provides the stable income floor; 20% CTA captures trend moves. Since July 2023: 72.86% total return, Sharpe 5.21, best year 2024 at +46.32%.

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