Case study on the Futures + Futures funding strategy on the FUN Token

Funding is a powerful tool for profit!

Arbitrage on funding rates is one of the most undervalued strategies. In this case study, I will break down how I managed to earn 177 USDT in 24 hours on the FUN token by exploiting the funding rate difference between MEXC and XT. I will show three entries and their results.

First Entry

I found the pair using a futures scanner on a website, noticed a good funding rate, and decided to act.

• MEXC rate: -1.79%

• XT rate: 0.0025%

For this asset, payouts occur every 4 hours, and it doesn’t matter how early I enter—I will still receive my interest. At the time of discovering the pair, there were 11 minutes left until the rate was applied. This was a great window for entry, and to save time, I used market orders for 40K FUN with 5X leverage. Long on MEXC and Short on XT.

In total, I opened positions for 1.3M coins, accounting for leverage on each exchange. With 30 seconds left on the timer, I prepared to close.

Profit is generated from the funding payouts on XT and MEXC. In the first entry, fees cost recieved me 113 on XT → net result +$30.

• Token: FUN
• Exchanges: Buy on MEXC (futures) → Sell on XT (futures)
• Strategy: Futures + Futures
• Deposit: 1560 USDT
• Total volume: 1560 × 5 leverage = $7800
• Profit: 30 USDT = 1.9% of the deposit per pair.
• Result: 1590 USDT after all fees.

Second Entry

After 4 hours, the rates hadn’t changed, and the spread remained. This meant I could repeat the success but with a larger deposit.

• MEXC rate: -1.79%

• XT rate: 0.0025%

This time, I opened positions for 6000 FUN with 5X leverage. By the time the rate was applied, positions totaling 2.9M coins (accounting for leverage) were open.

I closed the positions in parts and locked in a profit of +$47.

• Token: FUN
• Exchanges: Buy on MEXC (futures) → Sell on XT (futures)
• Strategy: Futures + Futures
• Deposit: 3480 USDT
• Total volume: 3480 × 5 leverage = $17,400
• Profit: 47 USDT = 1.3% of the deposit per pair.

Third Entry

Another 4 hours later, the funding rate spread still hadn’t changed, so I opened positions again. This time, 40K FUN with 5X leverage on the same exchanges. In total, positions for 2.8M coins (accounting for leverage) were opened.

I waited for the payout and closed the positions in batches of 200K coins.

Short position: +242 USDT

Long position: -142 USDT

This time, when closing the positions, I also managed to profit from the price difference between the two exchanges. This increased the final profit, even though the funding rates remained the same.

• Token: FUN
• Exchanges: Buy on MEXC (futures) → Sell on XT (futures)
• Strategy: Futures + Futures
• Deposit: 3360 USDT
• Total volume: 3360 × 5 leverage = $16,800
• Profit: 100 USDT = 2.97% of the deposit per pair.

Over 24 hours, the strategy yielded 177 USDT, or 3.36% of the deposit in net profit. If the rate difference had remained stable, scaling up and increasing the working deposit would have been possible.