When funding rates hit extremes, the group starts shouting "take the opposite side and make money," to put it simply, I used to be eager to chase too, but after a few lessons: you think you're eating the fee rate, but actually you're betting that the next needle won't prick you. When mempool congestion occurs, on-chain slippage drifts, entering and exiting aren't at the prices you expect, especially during volatility, those fee subsidies aren't enough to fill the gaps.

Now I prefer to be more conservative: extreme fee rates = market sentiment is at its peak, whether I can do the opposite depends on whether I’ve limited my risk (small position size, clear stop-loss, quick withdrawal). If not satisfied, I hide and wait for the fee rate to normalize. Recently, L2s are still comparing TPS, fees, and subsidies, causing a lot of noise, but I care more about whether you can smoothly close your position during congestion... First, take screenshots of the funding rates and open interest of commonly used contracts, don’t rely on memory.