Crypto funding rates are one of the most consistent edge cases in the market. Here's the mechanic:

When a perpetual futures contract trades at a premium to spot, longs pay shorts a fee every 8 hours. That fee is the funding rate.

Delta-neutral arb captures this by:

• Buying $X of spot (long)

• Shorting $X of perp futures on the same asset (short)

Net directional exposure: zero. You don't care if BTC goes up or down. You just collect the funding payment every 8 hours.

What makes it actually work:

• You need to find pairs with consistently elevated funding rates

• Auto-reinvest to compound — doing this manually is where most people lose edge
  

• VPS uptime is critical — a missed funding window is money left on the table

I built FundFlow to automate all of this on Bybit. Python bot, runs on any Linux VPS, scans all pairs, opens positions, collects funding, reinvests. Full source code included.

$39 one-time.