Funding Hedge: Funding-fee Hedging for Shorts

Reduces the impact of strongly negative funding on short positions by opening a short-lived long hedge around the funding settlement.

Feb. 28, 2026, 2:38 p.m.
Bot Settings
Funding Hedge: Funding-fee Hedging for Shorts

Operating conditions

  • applies only when an active short position exists;
  • triggers only on negative funding;
  • fixed direction: short → long;
  • if conditions are not met, no hedge is executed.

Location

Settings → Hedge

Parameters

  • Enable funding hedge — enables/disables the feature.
  • Funding-rate threshold (%)negative threshold (e.g., -2.0). Triggers when funding is ≤ threshold.
  • Seconds before funding — time window before settlement for opening attempts. Minimum 3 seconds.

Execution procedure

Before settlement:

  • attempts to open the long hedge;
  • open attempt timeout: 2 seconds;
  • if the hedge cannot be opened before the event, the hedge is skipped to avoid opening after settlement.

After settlement:

  • closes all positions opened as the hedge;
  • close timeout: 2 seconds;
  • close retries: every 2 seconds, up to 10 attempts.

Notice

  • Demo testing is recommended.
  • Use economically justified thresholds: if too low, open/close fees may exceed the funding benefit.
  • Many bots on one account may trigger a burst of orders, increasing API rate-limit and execution-delay risk.

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