Once funding rates reach extreme levels, my first reaction isn't to "rush in and take the other side," but to ask myself: what am I after... Frankly, I'm more afraid of being dragged along by volatility; even if the direction is correct, I can still get wiped out. Most of the time, I prefer to reduce my position a bit, place an order that isn't urgent to fill, and meanwhile reclaim my authorization, keep track of the accounts, and wait for the emotions to subside before re-entering.

Recently, everyone has been comparing RWA and U.S. Treasury yields to the on-chain "returns," and I also find it a bit amusing: the more stable something seems, the easier it is to relax risk controls. Anyway, I now see extreme funding rates as a warning light—if I can avoid it, I do. If I really need to take the other side, I only use small positions to test the waters.

You say "extremes should be countered with reverse trades"... don't rush just yet; what if the extreme can get even more extreme?