Gate Exchange (Damen Exchange) Spot + Futures + Options Arbitrage Practical Research Report — Manual Zero-Code, Micro-Profit Compound Snowball Growth

1. Introduction

The core essence of Jianjie Capital’s “10-point Dump” model is “certainty opportunity capture + hedging risk control + compound rolling,” rather than pure market manipulation. For individual traders, there’s no need to replicate institutional-level funds and algorithms. Under Gate Exchange’s existing spot, futures (perpetual contracts, delivery contracts), and options product system, by manually combining the three main categories, you can build a portfolio arbitrage strategy to avoid unilateral market risk, capture deterministic spread returns, and achieve zero-code, low-risk, repeatable micro-profit compound growth.

This report is based on Gate Exchange’s actual product rules, combined with platform funding rate mechanisms, spread patterns, and option pricing logic. It abandons complex programming and large capital thresholds, focusing on “manual operability, risk controllability, sustainable returns,” and dissects three sets of personal spot + futures + options arbitrage strategies, with supporting compound rolling methods and risk control systems. It aligns with the core positioning of “Gate Key to You” accounts focusing on hedging arbitrage and micro-profit compounding, helping individual traders achieve wealth snowball growth on the Gate platform, while strictly following platform rules and legal compliance.

2. Core Fundamentals of Gate Exchange Arbitrage (Prerequisite: Manual Zero-Code)

To realize spot + futures + options portfolio arbitrage, it’s first necessary to clarify the core rules and underlying arbitrage logic of Gate Exchange’s three main categories. No complex tools are needed; all operations can be completed relying on platform built-in functions. The core fundamentals are as follows:

(1) Core Product Compatibility (Arbitrage Vehicle)

1. Spot: Choose liquid mainstream coins (e.g., BTC, ETH) as the “base position” for arbitrage portfolios, used to lock in asset value. Rely on the platform’s stable spot trading depth to ensure smooth buying and selling with controllable slippage[superscript:1].

2. Futures: Focus on using perpetual contracts (no expiration date, mainly relying on funding rate mechanisms) and delivery contracts (with clear delivery dates, prices tending toward spot), to build hedging positions that offset spot price volatility risk. Leverage can be set manually (beginners recommended 1x to avoid liquidation risks)[superscript:1][superscript:4].

3. Options: Choose European options (exercise at expiration), focusing on combinations of call and put options to hedge extreme market risks and amplify spread gains. No complex pricing calculations are needed; rely on platform real-time quotes and manual judgment of exercise timing[superscript:7].

(2) Core Arbitrage Logic (Zero-Code Key)

The core of Gate Exchange’s portfolio arbitrage is to utilize the “price linkage differences among the three categories” and “platform rule dividends” to construct “hedging portfolios,” achieving “profit from certainty spreads/returns regardless of market rise or fall.” The core logic includes three points:

1. Funding Rate Arbitrage: The funding rate mechanism between perpetual contracts and spot. When the rate is positive, longs pay shorts. Buying spot + shorting perpetual contracts at this time can earn stable funding fees[superscript:1][superscript:2].

2. Spot-Futures Price Spread Arbitrage: There is a brief imbalance between futures (perpetual/delivery) and spot prices. When the spread reaches a certain magnitude, construct a low-buy high-sell hedge portfolio, waiting for the spread to revert for profit[superscript:2][superscript:4].

3. Options Hedging Arbitrage: Use the “risk hedging property” of options to add a “risk protection cushion” to the spot + futures portfolio, and also capture additional arbitrage opportunities through the spread between options and futures[superscript:7].

(3) Manual Operation Tools (Zero-Code Must-Have)

No professional quantitative software is needed; just use Gate Exchange’s built-in functions combined with Excel to record trading data:

1. Trading Tools: Use Gate App/web interface for spot, futures, and options trading. Use limit orders and market orders to manually open and close positions[superscript:2].

2. Auxiliary Tools: Built-in market charts, funding rate queries, spread monitoring functions to capture arbitrage opportunities; Excel for recording each trade’s entry price, exit price, fees, returns, and tracking compound progress[superscript:3].

3. Cost Control: Use Gate VIP level fee discounts, prioritize limit orders (lower order fees and potential rebates), reduce trading costs, and improve net arbitrage profits[superscript:3].

3. Practical Strategies for Gate Exchange Spot + Futures + Options Arbitrage (Manual Zero-Code, Direct Implementation)

Combining Gate Exchange product rules with personal manual operation scenarios, three arbitrage strategies are designed, with difficulty levels from low to high. Beginners can start with basic strategies and gradually advance. All strategies require no coding and can be operated manually, focusing on micro-profit compounding, aligned with account positioning.

(1) Basic Strategy: Spot + Perpetual Contract + Put Options (Funding Rate Arbitrage, Beginner’s First Choice)

This strategy draws on Jianjie Capital’s “fixed opportunity + hedge risk control” logic, relying on Gate’s perpetual contract funding rate mechanism, combined with spot and options, to achieve low-risk, stable funding income, while hedging extreme downside risks. Manual operation is simple, taking no more than 1 hour daily.

Core Logic

When Gate’s perpetual contract funding rate is positive (most of the time, longs pay shorts), buy spot (to lock assets), short an equivalent amount of perpetual contracts (earn funding fees), and buy a small amount of put options (to hedge extreme downside risk of spot/futures). This forms a “long spot + short futures + short put hedge” portfolio. Regardless of market movement, it earns funding fees and avoids extreme risks[superscript:1][superscript:2].

Operational Steps (using $BTC as an example, manual zero-code)

1. Opportunity Judgment: Open Gate’s “Perpetual Contract - Funding Rate” page, check $BTC perpetual funding rate. When the rate ≥ 0.01% (after fees, still profitable), start the strategy[superscript:1].

2. Capital Allocation: Assume starting capital of 10,000 USDT, allocate as 6:3:1: 6000 USDT to buy BTC spot (limit order to reduce slippage), 3000 USDT to short an equivalent amount of BTC perpetual contracts (1x leverage, isolated margin mode to avoid liquidation), 1000 USDT to buy $BTC put options (expiration 15-30 days, strike slightly below current spot price, as risk hedge)[superscript:2][superscript:3].

3. Position Management: Funding rate settles every 8 hours, three times daily. No frequent operations needed, just check funding rate and position status once daily[superscript:1].

4. Exit Timing: When funding rate remains negative (shorts pay longs), or put options are about to expire (not exercised), or spot and futures spread returns within 0.2%, close all positions simultaneously to lock in profits[superscript:2].

5. Return Estimation: Single funding rate of 0.01%, three times daily, yields about 10,000×0.01%×3=3 USDT daily. After deducting fees (~0.055%-0.2%), net daily profit is about 2-2.5 USDT. Monthly profit around 60-75 USDT, annualized yield approximately 7.2%-9%. Very low risk[superscript:1][superscript:3].

Core Advantages

Zero-code, low risk, no need to predict market direction. Just follow funding rates. Put options effectively hedge extreme downside risks. Suitable for beginners, simple daily operations, suitable for long-term repetition, laying the foundation for compound growth[superscript:1][superscript:2].

(2) Advanced Strategy: Spot + Delivery Contracts + Options (Spread Arbitrage, Micro-Profit High-Frequency)

This strategy draws on Jianjie Capital’s “capture spread opportunities” core, utilizing the spread pattern between Gate’s delivery contracts and spot, combined with options to hedge risks, achieving high-frequency micro-profit. Manual operation can be done 1-2 times daily, suitable for traders with some experience, aligned with micro-profit compound account positioning.

Core Logic

Before delivery, the price of delivery contracts gradually approaches spot. When the spread reaches 0.5%-1% (after fees, profitable), construct a “low-buy spot + high-sell delivery contract” hedge, combined with options to hedge the risk of spread expansion, waiting for the spread to revert for certain profit[superscript:4][superscript:6].

Operational Steps (using $ETH as an example, manual zero-code)

1. Opportunity Judgment: Open Gate, check $ETH spot price and nearby delivery contract prices (e.g., next quarter). When delivery contract price exceeds spot by more than 0.5% (spread ≥ 0.5%), start the strategy[superscript:4].

2. Capital Allocation: Assume starting capital of 10,000 USDT, allocate as 5:4:1: 5000 USDT to buy ETH spot (limit order), 4000 USDT to short an equivalent ETH delivery contract (1x leverage, full-margin mode to improve capital efficiency), 1000 USDT to buy $ETH put and call options (each 500 USDT, forming a two-way hedge to avoid abnormal spread fluctuations)[superscript:2][superscript:4].

3. Manual Operation: After opening positions, check spread twice daily (10 AM and 4 PM, following Jianjie Capital’s fixed time window logic). When spread narrows to within 0.2%, close all positions simultaneously to lock in profits[superscript:1][superscript:6].

4. Replenishment Rules: If spread widens beyond 1.2%, add small positions (no more than 10% of total capital) to increase potential gains after spread reversion. If spread exceeds 1.5%, stop loss immediately to avoid larger losses[superscript:6].

5. Return Estimation: Single spread arbitrage yields 0.3%-0.8%. One operation per day, net profit after fees about 30-80 USDT, monthly around 900-2400 USDT, annualized 10.8%-28.8%. Risks are controllable (after options hedge, maximum loss does not exceed 1% of total capital)[superscript:3][superscript:4].

Core Advantages

High-frequency micro-profit, repeatable daily, with replicable returns. Options’ two-way hedge effectively avoids abnormal spread fluctuations. Standardized manual process, no complex judgment needed. Suitable for individual traders seeking stable micro-profit and compound accumulation[superscript:6][superscript:7].

(3) High-Level Strategy: Spot + Perpetual Contract + Options Spread (Portfolio Arbitrage, Amplify Compound)

This strategy combines the advantages of the previous two, utilizing Gate’s perpetual funding rate and options spread opportunities to build a “spot + futures + options” triple portfolio, achieving compounded returns. Manual operation can generate higher micro-profit, suitable for long-term compound growth, aligning with the account’s core positioning of “hedge arbitrage + compound snowball.”

Core Logic

Simultaneously capture two deterministic opportunities: one is the funding rate profit from perpetual contracts and spot; the other is the spread profit between call and put options. Construct a “long spot + short perpetual + spread options” portfolio, earning stable funding fees and additional spread profits. Through triple hedging, minimize risks and realize compounded returns[superscript:1][superscript:2][superscript:7].

Operational Steps (using $BTC as an example, manual zero-code)

1. Opportunity Judgment: Both conditions must be met: ① $BTC perpetual funding rate ≥ 0.01%; ② The spread between $BTC call and put options exceeds 0.3% (same strike, same expiration)[superscript:1][superscript:7].

2. Capital Allocation: Assume starting capital of 10,000 USDT, allocate as 5:3:2: 5000 USDT to buy BTC spot, 3000 USDT to short an equivalent BTC perpetual contract (1x leverage), 2000 USDT to options spread (1200 USDT to buy call options, 800 USDT to sell put options, same strike and expiration)[superscript:2][superscript:7].

3. Position Management: Daily check funding rate settlement (3 times/day) and options spread changes. When funding rate turns negative or spread returns within 0.1%, close all positions simultaneously to lock in double profits[superscript:1][superscript:2].

4. Risk Control: If funding rate remains negative for over 24 hours or spread widens beyond 0.5%, close options positions immediately, keep the spot + futures funding arbitrage portfolio, avoid further spread losses[superscript:6][superscript:7].

5. Return Estimation: Daily funding rate profit about 2-2.5 USDT; single options spread profit about 0.2%-0.5% (roughly 20-50 USDT). Total daily net profit about 22-52.5 USDT. Monthly around 660-1575 USDT, annualized 7.9%-18.9%. The combined returns are still risk-controlled (max loss not exceeding 1.5% of total capital)[superscript:1][superscript:3].

Core Advantages

Combined gains from funding fees and options spreads, with risks further reduced through triple hedging. Suitable for long-term compound growth. Manual operation can be standardized and replicated, meeting individual traders’ needs for “low risk, high win rate, sustained profitability.”