Funding Rate Arbitrage

A fully autonomous trading system for capturing funding rate arbitrage opportunities across cryptocurrency perpetual futures exchanges. Features a Bloomberg Terminal-inspired dashboard for professional traders.

Strategy

Core concept: Open SHORT positions on exchanges with higher funding rates and LONG positions on exchanges with lower funding rates for the same asset, collecting the spread at each 8-hour funding interval.

Features

• Multi-Exchange Support - Binance and Bybit perpetual futures via ccxt
• Real-time Monitoring - WebSocket-based funding rate updates
• Automated Execution - Event-driven opportunity detection and order execution
• Risk Management - Circuit breakers, kill switch, liquidation handling
• Bloomberg-Style Dashboard - Professional trading interface
• Telegram Alerts - Real-time notifications for trades and critical events
• Simulation Mode - Test strategies on exchange testnets before going live

Quick Start

Prerequisites

• Python 3.10+
• Exchange API keys (Binance, Bybit)

Installation

# Clone the repository
git clone https://github.com/yourusername/fundingarb.git
cd fundingarb

# Create virtual environment
python -m venv .venv
source .venv/bin/activate

# Install dependencies
pip install -r requirements.txt

Configuration

# Copy example config
cp config/config.example.yaml config/config.yaml

# Edit with your API keys and settings
vim config/config.yaml

Run

# Start the backend server
python -m backend.main

# Or with uvicorn for development
uvicorn backend.api.server:app --reload --port 8000

Open dashboard/index.html in your browser or serve it via the backend.

Configuration

exchanges:
  binance:
    api_key: "your_api_key"
    api_secret: "your_api_secret"
    testnet: true  # Start with testnet!
  bybit:
    api_key: "your_api_key"
    api_secret: "your_api_secret"
    testnet: true

trading:
  symbols:
    - "BTC/USDT:USDT"
    - "ETH/USDT:USDT"
  min_spread_percent: 0.01
  max_position_usd: 10000
  leverage: 5

alerts:
  telegram:
    enabled: true
    bot_token: "your_bot_token"
    chat_id: "your_chat_id"

API Endpoints

Method	Endpoint	Description
GET	/api/health	Health check
GET	/api/status	Engine status
GET	/api/funding-rates	Live funding rates
GET	/api/positions	List positions
POST	/api/positions/open	Open hedged position
POST	/api/positions/{id}/close	Close position
POST	/api/engine/start	Start automation
POST	/api/engine/stop	Stop automation
POST	/api/engine/kill	Emergency kill switch

Project Structure

fundingarb/
├── backend/
│   ├── api/          # FastAPI server and routes
│   ├── engine/       # Trading engine (scanner, detector, executor)
│   ├── exchanges/    # Exchange adapters (Binance, Bybit)
│   ├── database/     # SQLAlchemy models and repository
│   ├── alerts/       # Telegram notifications
│   └── config/       # Configuration loading
├── dashboard/        # Bloomberg-style web UI
├── config/           # Configuration files
├── tests/            # Unit and integration tests
└── docker/           # Docker deployment

Testing

# Run all tests
python -m pytest tests/ -v --tb=short

# Run specific test file
python -m pytest tests/unit/test_detector.py -v

Security Notes

• Never enable withdrawal permissions on API keys
• Always start with testnet mode (testnet: true)
• Use encrypted config for production (see scripts/encrypt_config.py)
• Run simulation for at least 24 hours before live trading

Disclaimer

This software is for educational purposes only. Trading cryptocurrency derivatives involves significant risk. Past performance does not guarantee future results. Use at your own risk.

License

MIT