Using Delta-Neutral Bot
Delta Neutral / Funding Rate Arbitrage Bot Guide
The Delta Neutral bot on HyperFlash enables you to capture funding rate differentials between exchanges while maintaining a market-neutral position. By simultaneously holding opposing positions (long on one exchange, short on another), you can profit from funding rate payments without exposure to price movements.
Understanding Funding Rate Arbitrage
Funding rate arbitrage exploits the difference in perpetual futures funding rates between exchanges. When you go long on one exchange and short on the same asset on another exchange:
Your net market exposure is zero (delta neutral)
You collect funding payments when the spread is favorable
Price movements cancel out between the two positions
This strategy generates yield regardless of whether the market goes up or down.
Funding Rate Arb Opportunities
Navigate to Trading Bots > Funding Rate Arb Opportunities to view all available arbitrage opportunities.
Opportunities Table
The main table displays all current funding rate arbitrage opportunities:
Asset
The trading pair/token (e.g., LIT, ZK, FARTCOIN, MEGA, APEX, TRUMP, XAG, WLD)
Long / Short
Icons indicating which exchange to go long and which to go short
Max Leverage
Maximum leverage available for the opportunity (3x, 5x, 10x, 20x)
APR / Annualized
Current funding rate and annualized return (e.g., 0.0266% / 11.0/-255.5%)
APR / Max Leverage
Annualized return at maximum leverage (e.g., 0.1332%)
Price Spread
Current price difference between exchanges (e.g., 0.000%)
Open Interest
Available liquidity for the opportunity
Example Opportunities
LIT
5x
0.0266% / 11.0/-255.5%
0.1332%
ZK
5x
0.0258% / -315.1/-573.5%
0.1292%
FARTCOIN
10x
0.0134% / 11.4/-123.0%
0.1344%
MEGA
3x
0.0132% / 11.0/-121.1%
0.0396%
APEX
10x
0.0110% / 11.0/-99.0%
0.1099%
TRUMP
20x
0.0090% / -47.1/-137.5%
0.1808%
XAG
10x
0.0073% / 83.4/10.0%
0.0734%
WLD
5x
0.0063% / 11.4/-52.0%
0.0317%
Filtering and Search
Use the Search asset... field to find specific tokens
Click Filters to narrow down opportunities by various criteria
The table shows 1-10 of 200 opportunities with pagination controls
Opening a Delta Neutral Position
Click on any opportunity row to open the position configuration panel.
Position Overview
When you select an asset (e.g., LIT), you'll see a summary header showing:
Asset
LIT
Long / Short
Exchange icons showing direction
Max Leverage
5x
APR / Annualized
0.0266% / 11.0/-255.5%
APR / Max Leverage
0.1332%
Historical Data Chart
The chart displays Last 7 days of data with three view options:
Funding (default) - Shows funding rate history
Price - Shows price movements
Open Interest - Shows liquidity over time
The chart displays three data series:
Long (pacifica) - Green dashed line showing long-side funding
Short (hyperliquid) - Yellow dashed line showing short-side funding
Spread - Cyan line showing the funding spread between exchanges
Position Configuration
Position Size
Enter your desired position size in the input field:
Example: 2475.66
Select currency: USD (dropdown)
Leverage
Adjust leverage using the slider:
Range: 1x to Max Leverage (varies by asset)
Example: 3x leverage
⚠️ Note: Higher leverage amplifies both returns and liquidation risk.
Advanced SL/TP Settings
Expand this section to configure stop loss and take profit parameters:
Distance from Liquidation to Close
Set how close to liquidation the bot should close your position:
Adjustable slider
Example: 1x distance
Max Slippage
Configure maximum acceptable slippage when closing positions:
1%
Tight slippage tolerance
3%
Moderate tolerance
5%
Wider tolerance
10%
Maximum tolerance
Closing Prices
Displays the estimated closing prices for both legs of the position.
Exchange Connections
You must connect both exchanges to open a delta neutral position.
Long Side
The long position panel shows:
Exchange name: e.g., pacifica
Connection status: "Not Connected" or "Connected"
Connect button: Click to authorize the exchange
Short Side
The short position panel shows:
Exchange name: e.g., hyperliquid
Connection status: "Connected" (green checkmark) or "Not Connected"
⚠️ Important: You must connect both exchanges before opening a position. The message "Connect both exchanges to open position" appears until both are connected.
Order Configuration
Order Type
Select your order execution type from the dropdown:
Market - Execute immediately at current prices
Slippage Tolerance
Choose your acceptable slippage for market orders:
0.5%
Very tight
1%
Tight
3%
Moderate
5%
Wide
Pre-Trade Information
Before opening a position, review the following metrics:
Required Margin
Margin needed for the position
$825.22
Position Size
Total position size
-- (calculated)
Mid Price
Current mid-market price
--
Est. Liquidation Price
Estimated liquidation level
--
Est. Entry Price
Expected entry price
--
Est. Slippage
Expected slippage
0.00%
Funding Rate (8h)
Current 8-hour funding rate
0.0120% / 0.0100%
Details Panel
Expand the Details section for additional information:
8h Spread / APR
Funding spread and annualized rate
-0.002% / -0.02%
Total Position Size
Combined size of both legs
$4,951.32
Total Margin Required
Total margin across both exchanges
$1,650.44
1h Funding Spread
Hourly funding rate spread
-0.0003%
Opening the Position
Connect both exchanges - Ensure both long and short exchanges show "Connected"
Enter position size - Input your desired USD amount
Set leverage - Adjust to your risk preference
Configure slippage - Choose appropriate tolerance
Review metrics - Check required margin and estimated values
Click "Open Position" - Execute the delta neutral trade
Managing Positions
Positions Table
Monitor your open and closed positions in the Positions section:
Open
Currently active delta neutral positions
Closed
Historical closed positions
Position Columns
Mode
Position type (Delta Neutral)
Pair
Trading pair
Account
Connected accounts
Fees
Trading fees paid
RPNL
Realized Profit and Loss
Spread
Captured funding spread
Filled
Position fill status
Status
Current position status
Actions
Close/modify position
How Funding Payments Work
Payment Schedule
Funding payments occur every 8 hours on most exchanges
The Funding Rate (8h) shows the rate for the next payment period
Collecting Payments
When your position is correctly set up:
If long funding > short funding: You pay on the long side, receive on the short side
If short funding > long funding: You receive on the long side, pay on the short side
Your net result depends on the spread between the two rates
APR Calculation
The APR / Max Leverage figure shows your potential annualized return:
Base APR × Leverage = Leveraged APR
Example: 0.0266% × 5x = 0.1332% per funding period
Risk Management
Price Risk
Delta neutral positions eliminate directional price risk since gains on one leg offset losses on the other.
Funding Rate Risk
Funding rates change every 8 hours
The spread can become negative, causing losses
Monitor the Historical Data chart for rate trends
Liquidation Risk
Each leg can be liquidated independently
Use the Distance from Liquidation setting to auto-close before liquidation
Higher leverage = higher liquidation risk
Slippage Risk
Large positions may experience execution slippage
Use limit orders when available for better fills
Set appropriate Max Slippage tolerance
Best Practices
Start with lower leverage - 2-3x until you understand the dynamics
Monitor funding rate trends - Check the 7-day historical chart before entering
Avoid negative spreads - Only enter when the spread is consistently positive
Set stop losses - Configure the Distance from Liquidation setting
Check both exchanges - Ensure sufficient margin on both sides
Consider fees - Trading fees and funding payments affect net returns
Watch price spreads - Large price spreads between exchanges can affect entry/exit
Diversify across assets - Don't concentrate all capital in one opportunity
Troubleshooting
Cannot Open Position
Verify both exchanges are connected
Check sufficient margin on both exchanges
Ensure position size meets minimum requirements
Position Showing Losses
Funding rate spread may have reversed
Check current rates vs. entry rates
Consider closing if spread remains negative
High Slippage on Entry/Exit
Reduce position size
Use tighter slippage settings
Check liquidity (Open Interest) before entering
Exchange Connection Issues
Refresh the page
Re-authenticate with the exchange
Check exchange API status
Glossary
Delta Neutral
A position with zero net market exposure
Funding Rate
Periodic payment between long and short traders
APR
Annual Percentage Rate - annualized return
Spread
Difference between funding rates on two exchanges
Liquidation
Forced closure when margin is insufficient
Slippage
Difference between expected and executed price
Open Interest
Total value of outstanding positions
8h Rate
Funding rate for an 8-hour period
Last updated: February 2026
Last updated