These days, the funding rates are becoming extremely volatile again. A bunch of people in the group are asking whether to take the other side and earn that small fee. Honestly, what I’m more afraid of is “the rate gives you candy, but volatility hits you with a punch,” especially with large slippage and being squeezed, causing all the gains to be spit back out.

My own approach is a bit cautious: first, I make sure private trading/protection is well set up, try multiple routing options, and if I do go against the trend, I only use small positions. I’d rather miss out than become liquidity in high volatility. Recently, some regions are discussing tax hikes, tighter or relaxed compliance, and deposit/withdrawal expectations are shifting. This makes the market sentiment more prone to swings. The funding rate looks attractive, but it’s really just everyone feeling insecure and pushing against each other.

Anyway, I now prefer to wait until the funding rate returns to a normal range before acting, and not turn “taking the other side” into “becoming the market’s opponent.”