Understand
the trade.

A perpetual futures contract—usually shortened to perp—lets you take a position on an asset’s price without buying the asset itself. Unlike a dated futures contract, it has no scheduled expiry.

Think of going long as a bet that the price will rise, and going short as a bet that it will fall. That’s a useful starting point, but these aren’t fixed-odds bets: your gain or loss changes with the price, and you must maintain collateral to keep the position open.

Price effects only. Funding and costs are separate.

Because a perp never expires, exchanges use funding payments to help keep its price close to the underlying market. These payments pass between traders holding opposite sides of the contract.

Rates can change sign. Payment schedules also differ by exchange and contract, so compare rates over the same time period. An hourly rate and an eight-hour rate are not directly comparable.

Further reading: Binance’s explanation of funding and Coinbase’s funding mechanics.

A cross-exchange funding trade pairs a long perp on one exchange with a short perp on another, for the same asset. The aim is to reduce exposure to the asset’s direction while collecting a favourable difference in funding.

The funding rates on the two exchanges can differ even when the positions’ price movements largely offset. That difference is the opportunity. If the difference reverses, the same pair can cost money to hold.

The token does not need to rise for this strategy to work. The aim is to earn from funding differences, rather than correctly predict the token’s next price move.

Delta describes how a position’s value responds to a change in the underlying price. Delta neutral means combining positions so their directional price exposures offset. In a matched pair, the long’s gain is balanced by the short’s loss—or the reverse.

The price is still relevant to each leg’s collateral, dollar notional and funding amount. Different prices across venues, mismatched fills or liquidation can break the offset. Delta neutral reduces directional risk; it does not remove the need to manage the position.

Concept reference: CME Group’s explanation of delta-neutral hedging. The paired-perp illustration above assumes matching linear contracts.

Here’s a hypothetical pair with $5,000 of exposure on each side. Both rates below cover the same eight-hour interval. These are teaching numbers, not current quotes or a forecast.

If those rates and notionals stayed unchanged for three intervals, net funding would be $3 per day. Suppose estimated entry, exit and transfer costs totalled $21: it would take seven days just to cover them.

Lower funding stretches that break-even time. Negative funding moves you backwards. A full live result also includes price gains or losses on both legs and actual execution costs.

A few dollars of funding can look unremarkable on their own. Across many trades and months, small positive results after costs can accumulate into a meaningful return—without needing the token itself to appreciate.

That is the appeal: seeking repeatable income while keeping directional exposure small. The value comes from what you retain after costs and losses, not from chasing the largest advertised rate.

The example ends at $10,720. Some months contribute more; others give gains back or offer no worthwhile opportunity. A worthwhile annual result does not require every day to be profitable.

Reinvesting gains can increase the size of later positions and create compounding, if suitable opportunities remain available. This illustration keeps that out of the calculation: it simply adds the monthly net results.

Use practice to build a longer record: review cumulative results, losing periods, time spent waiting and the costs of switching routes. Those tell you more than annualising one unusually good funding rate.

project-2506 puts the research, comparison and paper positions in one iPhone app. The default practice balance is $10,000; you can choose a different simulated starting amount in the app.

1. Read Intel

   Understand the daily assessment, flagged risks and routes that may need attention. Sometimes the assessment is to wait.

2. Compare the opportunities

   Review the two legs, average funding spread, estimated daily funding, break-even time and liquidity information. Choose the simulated position you want to open.

3. Follow the position

   The simulation deducts estimated round-trip trading and transfer costs at entry. Funding then accrues using refreshed market rates, so a fading spread slows the result. “Locked” records the entry rate; it does not guarantee that rate for the life of the trade.

4. Close and review

   You can close manually. The app can also close a paper position when its spread guard detects deterioration. Treasury keeps the completed results and closing reasons so you can learn from gains and losses.

Use your first 30 days for two practice rounds: make a decision, review it, then apply what you learned. This is a learning structure, not a fixed holding period or an expiry date for free practice.

The aim is preparation for real conditions. The current beta models funding and estimated costs; it does not place real orders. See what the simulation models and where the boundaries are →

For real-money trading in the planned App Store release, you’ll need your own access to the exchanges used by your chosen route. project-2506 connects to those accounts; signing up for the app does not create exchange accounts for you.

1. Register and complete identity verification (KYC)

   Before live trading through Binance, Bitget or Bybit, you must complete the exchange’s required KYC (“Know Your Customer”) identity verification. Complete this directly with each exchange you plan to use, along with its trading-access requirements. Connecting an API key does not bypass verification.

   Hyperliquid uses wallet-based onboarding; follow its connection and eligibility requirements. The simulation beta does not require you to complete exchange KYC.

   Exchange guidance: Binance · Bitget · Bybit · Hyperliquid onboarding.

2. Connect using API keys

   An API key is a credential that lets software interact with your exchange account under the permissions you grant. You’ll connect your accounts to project-2506 using API keys or the venue’s equivalent API credentials.

3. Fund the accounts used by the route

   Real trades need real funds and enough collateral for the positions on each venue. The paper balance you practise with does not become money in an exchange account.

Real-money access is planned as a paid option in the App Store release. Detailed connection instructions and the permissions required for each venue will accompany that release. See what happens after you connect →

In the planned App Store release, project-2506 will check account readiness, coordinate necessary fund transfers, open paired positions and place protective orders where supported. It checks progress throughout the operation and flags situations that need attention.