kraken-funding-carry
Use this skill for:
- scanning funding rates across perpetual contracts
- identifying carry opportunities (collect funding by being on the receiving side)
- entering hedged carry positions (spot hedge + futures position)
- monitoring ongoing carry yield
Core Concept
Perpetual futures charge periodic funding payments between longs and shorts. When the funding rate is positive, longs pay shorts. When negative, shorts pay longs. A carry strategy positions on the receiving side and hedges with spot to remain market-neutral.
Scan Funding Rates
bashkraken futures historical-funding-rates PF_XBTUSD -o json 2>/dev/null kraken futures historical-funding-rates PF_ETHUSD -o json 2>/dev/null
Compare rates across contracts to find the highest yield.
Carry Entry (Positive Funding)
When funding is positive (longs pay shorts):
- Short the perpetual.
- Buy spot as a hedge.
bash# Hedge: buy spot kraken order buy BTCUSD 0.01 --type market -o json 2>/dev/null # Carry: short perpetual (collect funding) kraken futures order sell PF_XBTUSD 1 -o json 2>/dev/null
Carry Entry (Negative Funding)
When funding is negative (shorts pay longs):
- Long the perpetual.
- Sell spot as a hedge (or skip hedge if already holding).
bash# Carry: long perpetual (collect funding) kraken futures order buy PF_XBTUSD 1 -o json 2>/dev/null # Hedge: sell spot kraken order sell BTCUSD 0.01 --type market -o json 2>/dev/null
Yield Calculation
Annualized yield = funding_rate * funding_periods_per_year * 100.
Kraken funding periods are typically every 4 or 8 hours (varies by contract). Check contract specs:
bashkraken futures instruments -o json 2>/dev/null
Monitoring
Track funding accrual:
bashkraken futures accounts -o json 2>/dev/null
The unrealizedFunding field shows accumulated but unsettled funding.
Watch for funding rate flips:
bashkraken futures historical-funding-rates PF_XBTUSD -o json 2>/dev/null
If the rate flips direction, the position switches from collecting to paying. Exit or reverse.
Exit
Close both legs when carry becomes unprofitable:
bashkraken futures order buy PF_XBTUSD 1 --reduce-only -o json 2>/dev/null kraken order sell BTCUSD 0.01 --type market -o json 2>/dev/null
Hard Rules
- Always hedge carry positions to avoid directional exposure.
- Monitor funding rates continuously; a flip turns profit into loss.
- Monitor margin on the futures leg; price moves require margin even when hedged.
- Requires human approval for all entries and exits.
- If you hit a mismatch between what you are trying to do and the CLI's interface or responses — including a mismatch between this skill and the installed CLI version's contract — feel free to submit feedback with
kraken feedback.
