Profit Calculation
Profit Sources
Section titled “Profit Sources”1. Funding Fee Arbitrage (Primary)
Section titled “1. Funding Fee Arbitrage (Primary)”- Profit from funding rate difference between exchanges
- Received every funding interval (8 hours)
2. Price Spread Arbitrage (Secondary)
Section titled “2. Price Spread Arbitrage (Secondary)”- Additional profit from entry price difference (Single-Delay mode)
- Buy low on one exchange, sell high on another
Calculation Example
Section titled “Calculation Example”Scenario:- Symbol: BTCUSDT- Position Size: $1,000 per exchange (total $2,000 exposure)- Bybit Funding Rate: +0.01%- KuCoin Funding Rate: +0.05%- Direction: Long Bybit / Short KuCoinFunding Fee Calculation
Section titled “Funding Fee Calculation”┌───────────────────────────────────────────────────────────┐│ ││ Bybit (Long): ││ - Position Size: $1,000 ││ - Funding Fee: $1,000 × 0.01% = -$0.10 (pay) ││ ││ KuCoin (Short): ││ - Position Size: $1,000 ││ - Funding Fee: $1,000 × 0.05% = +$0.50 (receive) ││ ││ Net Profit per Epoch: $0.50 - $0.10 = $0.40 ││ Daily Profit (3 epochs): $0.40 × 3 = $1.20 ││ Monthly Profit: $1.20 × 30 = $36.00 ││ APR: ($36 × 12) / $2,000 = 21.6% ││ │└───────────────────────────────────────────────────────────┘Fee Structure
Section titled “Fee Structure”| Exchange | Taker Fee | Maker Fee |
|---|---|---|
| Bybit | 0.055% | 0.02% |
| KuCoin | 0.06% | 0.02% |
Total Round-Trip Fee
Section titled “Total Round-Trip Fee”Open: 0.055% + 0.06% = 0.115%Close: 0.055% + 0.06% = 0.115%─────────────────────────────Total: 0.23%APR Formula
Section titled “APR Formula”APR = funding_delta × (8760 / epoch_hours)
Where:- funding_delta = |rate_exchange_A - rate_exchange_B|- epoch_hours = funding interval (usually 8 hours)- 8760 = total hours in a yearExample
Section titled “Example”- funding_delta = 0.0004 (0.04%)- epoch_hours = 8- APR = 0.0004 × (8760 / 8) = 0.438 = 43.8% per yearNext Steps
Section titled “Next Steps”- Learn about Risk Management
- Read the FAQ