Arbitrage and dip-buying drive SK hynix’s trading fees to stay elevated, as trader “yixie” net paid $481,000 in funding fees.

BlockBeats message: On July 14, according to monitoring by Hyperinsight, the high-premium arbitrage in Heico ADRs and dip-buying funds are jointly pushing into SKHX longs. As of press time, Hyperliquid is quoting SKHX at $1,291.90 and SKHY at $162.47. Based on 10 ADRs corresponding to 1 share of the underlying Korean stock, the ADR premium is still about 25.76%.

For the price-gap convergence trade, you need to go long SKHX and short SKHY; the funding rates on both sides therefore diverge: SKHX’s funding rate has risen to +0.0459% per hour, meaning longs pay shorts; SKHY’s funding rate is −0.0050% per hour.

Against this backdrop, the trader “yixie” has become the long with the largest losses under high funding rates: the cumulative net paid funding fees have reached $481,000. Of that, just yesterday’s ADR listing trading day alone spent about $157,000. Under static calculations using the current fee rates, this long position will still incur about $5,890 in funding fee expenses per hour.

Its current position is a 2x isolated-perpetuals long on 10,025.3 units of SKHX, with a notional size of about $12.952 million, an average holding price of $1,461.815, and an unrealized loss of about $1.703 million (ROI about −23.2%), with a liquidation price of about $804.50.

Prior news: “Whale Tracking” went long on SK Heico ADRs’ listing trading but failed; the trader “yixie” is temporarily down $1.8 million