When funding rates hit an extreme, the group chat starts arguing about whether to take the other side of the trade.

I’m basically not trading aggressively anymore; honestly, what I fear most isn’t losing money, but losing control— that feeling when your position gets too big, and with every fluctuation, you can only watch the liquidation button get closer.
Counterparty positions do have a “mathematical expectation,” but only if you can withstand the period of being squeezed out, and have clear stop-losses; otherwise, it’s like betting your life on mean reversion.

So what I usually do is: when the rate is outrageous, I first reduce leverage or even hide away, and wait until volatility returns to a normal range.
I’ve seen too many blockchain games with inflation + studio + coin price spirals, and in the end, it’s not that the logic is wrong, but that the rhythm is out of control.
Extreme funding rates are pretty similar— don’t be led by market sentiment… I’d rather miss out than get caught.