When funding rates reach extremes, my first reaction isn't "This time the counterparty is stable," but rather treating the position like going out in the rain: bringing an umbrella or just not going out at all. To put it simply, at extremes, the market is more like an emotional gate opening; the direction may be correct, but the volatility can also shake people off.

I usually first check whether the interest rate curve on my borrowing side has distorted; if it has, I’ll first close the umbrella: reduce leverage, shorten duration, even if it means earning less. If I really want to take the other side, I only use small positions, gradually place orders, and enter in segments, avoiding hard confrontations at extremes. Recently, I’ve also felt the on-chain tags/data tools are lagging behind; while the hype is there, don’t overly trust the "smart money" signals—ultimately, it still comes down to the umbrella—whether your position and risk management can withstand a gust of wind. That’s all for now.