Strategy Hub

Funding Carry Strategy

Funding carry is the broad idea of collecting recurring funding transfers from perpetual futures positioning. The useful question is not whether the headline yield looks large. The useful question is whether that yield survives decay, crowding, fees, and deployability constraints once the trade meets reality.

Funding carry is a real strategy category, but raw funding is not the same as realistic carry once execution and persistence are accounted for.
Compare realistic opportunitiesSee live opportunitiesUnderstand yield mirage
Intent map
Primary query

what is funding carry strategy

Main angle

Hub page for the strategy family with concept-first framing and bridges into product surfaces.

Commercial intensity
mixed
Secondary queries
funding carry explainedhow funding carry worksfunding carry strategy crypto
How it works
A carry setup typically pairs spot or delta offsetting exposure with perpetual futures so funding transfers become the visible yield source.
The gross number comes from current funding snapshots, but the capture path depends on holding period, fee drag, basis, and the ability to keep the position open as conditions change.
The more crowded the setup becomes, the more likely the headline rate decays before the operator captures the advertised annualized figure.
Why naive yield is misleading
Annualized funding extrapolates a short snapshot. That is useful for context, but weak as a promise about what survives over time.
Crowding and deterministic decay compress the carry profile faster than many public dashboards imply.
Deployability depends on structural capacity, not only attractiveness. A high score with shallow capacity is not equivalent to a desk-sized trade.
Risks and limitations
Funding can reverse or compress before enough transfer periods occur.
Execution costs, slippage, and venue frictions can erase attractive-looking carry.
Delta-neutral structure still leaves operational, liquidity, and monitoring risk.
Some segments remain bounded by limited history or weaker validation depth.
FYOS interpretation layer
FYOS compares advertised APR with Model-Adjusted APR so users can see how much of the carry survives clean-core adjustments.
Funding Mirage highlights where the market is selling a story that is unlikely to survive reality.
Reality and Screener surfaces separate opportunity attractiveness from deployability and show when a setup is fresh enough to treat seriously.
Related strategy reading
Delta-neutral funding strategy
Move from the broad carry concept to the hedged structure and its practical limits.
Perpetual funding arbitrage
See how carry is usually expressed through long-short or venue-based arbitrage structures.
Funding rate risk
Review the main ways carry breaks once funding, basis, or liquidity shifts.
Docs and learning bridge
Methodology
Public methodology overview for clean-core scoring and deployability.
Deployability
Why structural capacity matters more than raw headline yield.
Funding Mirage metric
Definitions behind raw-vs-adjusted yield interpretation.
FAQ
Is funding carry the same as risk-free yield?

No. Even a hedged structure still faces decay, crowding, liquidity, fee, and operational risk.

Why does FYOS not rank opportunities by headline APR first?

Because the largest annualized snapshot is often the least durable once clean-core adjustments and freshness are applied.

What is the best next step after learning the concept?

Look at live opportunities in the Funding Leaderboard or Screener, then compare raw and model-adjusted values before thinking about deployment.

What to do next
Compare realistic opportunities
Open the public leaderboard to contrast advertised APR and Model-Adjusted APR.
See live opportunities
Open the FYOS Screener for the full live universe.
Understand yield mirage
Use Mirage to see why a large funding headline can be misleading.
These pages are educational and public-safe. They describe how funding carry works, why Model-Adjusted APR matters, and where risk and deployability constraints appear. They are not a promise of returns and not a substitute for execution judgment.

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