MWHLabs | Premium-Docs

The Premium strategy takes advantage of funding rate differences across multiple exchanges.

It typically involves entering LONG/SHORT positions on different exchanges to capture funding rate gaps while hedging against price movement, aiming for risk-free returns.

By combining price differences and balanced position sizing, you can earn funding profits without directional risk.

📘 How It Works

Funding fees are paid every 8, 4, or 2 hours depending on the exchange. Both the timing and rates vary by platform.
If Exchange A offers +0.5% and Exchange B offers -0.5% with 10x leverage, you can potentially earn a 10% return.
Positions are balanced either by equal size or leverage ratio to hedge against price volatility.
By holding the positions until the funding payout time and then closing them, you can secure the funding profit from each exchange.

🔧 Execution Steps

Open a futures account and deposit funds on a global exchange (Binance, Bybit, OKX, Bitget, Gate.io) by transferring assets from a domestic exchange.
Check the Premium page or the Premium Top 5 section to find favorable funding opportunities.
Enter positions on both exchanges showing a premium difference. (To minimize risk from funding rate changes, it's recommended to enter closer to the funding payout time.)
If the premium is -0.5% / +0.5%, go LONG on the -0.5% exchange and SHORT on the +0.5% exchange.
If the premium is -0.5% / -0.1%, go LONG on the -0.5% exchange and SHORT on the -0.1% exchange.
If the premium is +0.5% / -0.1%, go SHORT on the +0.5% exchange and LONG on the -0.1% exchange.
If the premium is +0.5% / +0.1%, go SHORT on the +0.5% exchange and LONG on the +0.1% exchange.
You can check the suggested position direction by color on the Premium page or Premium Top 5 section.
In the Premium sections, red indicates a favorable SHORT entry, and green indicates a favorable LONG entry.
Set your leverage carefully—higher leverage increases liquidation risk, so adjust accordingly.
Coins with low trading volume may not fill your order at the intended size. Always check the order book and volume before entering.
At the funding payout time, close both positions simultaneously to collect the funding profit.
If the premium trend is expected to continue, you may choose to hold the positions longer.
However, since MWHLabs focuses on minimizing risk, we generally recommend closing positions after funding is received.

🚀 Recommended Use Cases

Maintain equal LONG and SHORT positions on the same coin to minimize directional risk (see Premium page).
Open a SHORT position on the exchange with a higher funding rate and a LONG position on the exchange with a lower rate to profit from the funding gap (see Premium page).
Combine spot and futures positions to pursue risk-free returns through hedging (see Hedge page).

⚠️ Important Notes

The estimated return on the Premium page excludes 0.8%, which is calculated as 0.2% maker fee × 4 cycles.
Be sure to factor in network fees and exchange fees when calculating your actual returns.
Temporary trading halts or low liquidity on one of the exchanges may make it difficult to enter or exit positions.
Higher leverage increases the risk of liquidation. Adjust leverage settings carefully.
MWHLabs (mwhlabs.com) assumes no responsibility for any cryptocurrency prices or investment-related information shown on this site.
All investment decisions are your own responsibility. Please proceed with caution.