When the funding rate hits an extreme, the group starts yelling, “The counterparty is basically picking up free money.” Honestly, I’ve been tempted too—but most of the time, I choose to stay away. When the fee rate is absurdly high, it usually means everyone is crowded into the same side; a breakout isn’t impossible. But if you try to do the opposite, you can easily get pushed along by your emotions—if you can’t hold up, you end up as “fuel for an early top.”

I usually first check whether position concentration and TVL are keeping up. If they’re not, don’t force it—better to make a little less profit. Recently, the unlock calendar has been dug up and repeatedly hauled out to scare people again: that kind of sell-pressure anxiety stacked on top of high funding rates makes the volatility feel even more like a lottery… I’d rather wait until the funding rate returns to a more normal point before I move. No matter how tough I act, when it comes to stop-loss, I still have to acknowledge it.