Fee Rate Arbitrage Squeeze Strategy (Funding Rate Squeeze)



Core Logic: When the funding rate is extremely exaggerated (extremely high or extremely low), the main participants use the sharp price fluctuations before and after the settlement time to deliberately target and force-liquidate those positions that are in a weak position for the purpose of earning arbitrage gains or because they are paying the fee.

"Fee Rate Window Warning: The current funding rate is at an extreme level, and market consensus expectations are overly strong. We have detected targeted cleansing against 'arbitrage positions.' The price is pulsing sharply in the opposite direction of the 'fee-rate losers.' Beware of a violent rebound after funding rate settlement."
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