# Strategy — Funding Rate Arbitrage

## Overview

Build a funding rate bot that enters long/short on Hyperliquid when funding exceeds thresholds, holds through funding windows, exits on rate normalization.

## Detailed Methodology

Hyperliquid funding rates are polled every hour. When funding exceeds `positive_threshold`, the bot enters short to collect funding from longs. When funding is below `negative_threshold`, it enters long. Positions are held through the funding window and exited when rate normalizes.

**Optimal regime:** Extreme funding environments during crowded positioning on Hyperliquid perps.

## Performance Context

| Metric | Value |
|--------|-------|
| PnL | +$4,560 |
| Win Rate | 76.4% |
| Sharpe | 2.41 |
| Max DD | -2.8% |

## Implementation

Full logic in `src/hyperliquid_bot/strategy.py`

## Configuration

Edit `config.yaml` params section for strategy-specific tuning.