kraken-funding-carry

kraken-funding-carry

Use this skill for:

• scanning funding rates across perpetual contracts
• identifying carry opportunities (collect funding by being on the receiving side)
• entering hedged carry positions (spot hedge + futures position)
• monitoring ongoing carry yield

Core Concept

Perpetual futures charge periodic funding payments between longs and shorts. When the funding rate is positive, longs pay shorts. When negative, shorts pay longs. A carry strategy positions on the receiving side and hedges with spot to remain market-neutral.

Scan Funding Rates

kraken futures historical-funding-rates PF_XBTUSD -o json 2>/dev/null
kraken futures historical-funding-rates PF_ETHUSD -o json 2>/dev/null

Compare rates across contracts to find the highest yield.

Carry Entry (Positive Funding)

When funding is positive (longs pay shorts):

1. Short the perpetual.
2. Buy spot as a hedge.

# Hedge: buy spot
kraken order buy BTCUSD 0.01 --type market -o json 2>/dev/null

# Carry: short perpetual (collect funding)
kraken futures order sell PF_XBTUSD 1 -o json 2>/dev/null

Carry Entry (Negative Funding)

When funding is negative (shorts pay longs):

1. Long the perpetual.
2. Sell spot as a hedge (or skip hedge if already holding).

# Carry: long perpetual (collect funding)
kraken futures order buy PF_XBTUSD 1 -o json 2>/dev/null

# Hedge: sell spot
kraken order sell BTCUSD 0.01 --type market -o json 2>/dev/null

Yield Calculation

Annualized yield = funding_rate * funding_periods_per_year * 100.

Kraken funding periods are typically every 4 or 8 hours (varies by contract). Check contract specs:

kraken futures instruments -o json 2>/dev/null

Monitoring

Track funding accrual:

kraken futures accounts -o json 2>/dev/null

The unrealizedFunding field shows accumulated but unsettled funding.

Watch for funding rate flips:

kraken futures historical-funding-rates PF_XBTUSD -o json 2>/dev/null

If the rate flips direction, the position switches from collecting to paying. Exit or reverse.

Exit

Close both legs when carry becomes unprofitable:

kraken futures order buy PF_XBTUSD 1 --reduce-only -o json 2>/dev/null
kraken order sell BTCUSD 0.01 --type market -o json 2>/dev/null

Hard Rules

• Always hedge carry positions to avoid directional exposure.
• Monitor funding rates continuously; a flip turns profit into loss.
• Monitor margin on the futures leg; price moves require margin even when hedged.
• Requires human approval for all entries and exits.