What is funding rate farming?

Funding rate farming means holding a token and an equal short perpetual position on it at the same time. The two price moves cancel, and what is left is the funding payment perpetual futures make every hour between longs and shorts. MUTEX Funding Farm opens and runs both legs for you.

Is the MUTEX Funding Farm a fixed yield?

No. The farm earns whatever the hourly funding rate pays, and that rate changes every hour and can turn negative, in which case the short pays instead of earning. The returns the app shows per market are trailing 12-month history, not a promise.

What does it cost to farm?

The spot buy and sell carry no MUTEX fee. The short pays the standard perp trading fee on its open and close, and both legs pay price impact. The app shows an all-in round-trip estimate per market before you start, charged on half your allocation.

What is the minimum and maximum allocation?

The minimum is set by a runtime setting and is currently 100 USDC. Each market has its own cap, currently 20,000 USDC per farm, and the allocation can never be more than your Funding balance.

Can my farm be liquidated?

The short runs at 1x on isolated margin, so it is liquidated only if the price roughly doubles. Before that, the farm de-risks on its own by closing half of both legs. If the short is liquidated anyway, the farm sells the token and returns what is left to your Funding balance.

How do I stop a farm and get my money back?

Press Stop Farming on the farm's card. The farm closes the short, sells the token with no MUTEX fee and sweeps the USDC, funding included, back to your Funding balance. A farm on a tokenized stock waits for the US market session to sell its stock leg.

Can I run more than one farm?

Yes, one farm per market. You can farm several markets at once, each with its own allocation, and every farm can be stopped on its own.

Trade · Funding Farm

Earn the funding rate, not the direction.

MUTEX Funding Farm splits your USDC in two: half buys a token, half shorts the same token at 1x. Price moves cancel out. What the position earns, or pays, is the hourly funding rate of the perpetual market.

Open the Funding Farm

app.mutex.trade/farm

Yield · Delta-neutral

Funding Farm

Earn the hourly perpetual funding rate, hedged. Returns shown are over the last 12 months.

How it works

BTCBTC farmFarming · day 23Stop Farming

Allocated

$2,000

Funding collected

+$6.07

Net APR · live

4.8%

Realized, on your allocation

Liq. distance

+94%

Short liquidates only up there

Hedged: your BTC holding vs the same amount short. Runs until you stop it.

Farmable markets

CardsTable

Market	Net APR	Funding now	Covers costs
SOLSOL	6.7%	8.3% pa	16d	Farm SOL
BTCBTCFarming	5.0%	4.8% pa	17d	Details
GOOGOOGLClosed · opens in 14h 30m	3.6%	3.5% pa	28d	Details

The MUTEX Funding Farm, one BTC farm running, markets in table view. Example data.

Delta neutral yield

What the Funding Farm is

A perpetual future has no expiry, so the exchange keeps its price close to the spot price with a funding payment between longs and shorts. When the perp trades above spot, longs pay shorts. When it trades below, shorts pay longs. On the perp venue MUTEX uses, funding settles every hour.

MUTEX Funding Farm is a way to collect that payment without betting on price. It holds the token itself and an equal short on the token's perp market. If the price rises, the token gains what the short loses; if it falls, the short gains what the token loses. This is the trade usually called funding rate arbitrage or cash and carry, run for you as one position you start with one amount and stop with one button.

The farm only lists markets the MUTEX desk has picked because their funding has been reliably positive. It currently includes BTC and SOL, and also tokenized-stock markets such as GOOGL. For each market the app shows the trailing 12-month return, the funding rate now, the predicted next hour, the all-in round-trip cost and how many days of funding cover it.

Step by step

How the Funding Farm works

You choose a market and an allocation in USDC from your Funding balance. MUTEX Funding Farm does the rest, and both legs are usually in place within a few minutes.

1
Your allocation splits in two
Half moves to your Spot account, half to a margin account the farm uses only for its shorts.
2
Half buys the token, with no fee
The spot half buys the token on the MUTEX spot desk. Farm orders pay no MUTEX desk fee.
3
Half shorts it, 1x isolated
The short is sized from the quantity actually bought, so the two legs match. Isolated margin keeps it apart from your other trading.
4
Funding settles every hour
Funding accrues on the short and stays with the farm. It comes back with your capital when you stop. The farm runs until you stop it.

The farm card shows what you allocated, the funding collected so far, the realized APR on your allocation once a day has passed, and how far the price would have to rise before the short is liquidated. You get a notification when a farm closes.

Worked example

A funding farm on BTC, in numbers

An example only: the funding rate here is chosen to make the arithmetic easy to follow. It is not a forecast, and real BTC funding moves every hour.

Funding, 30 days

+3.60USDC

500 short at 0.0010%/h

Entry + exit cost

-2.50USDC

0.50% of the 500 short

Net after 30 days

+1.10USDC

On 1,000 USDC allocated

Step	Arithmetic	Result
Allocation split	1,000 / 2	500 spot + 500 short
Funding per hour	500 x 0.0010%	0.005 USDC
Funding per day	0.005 x 24	0.12 USDC
Funding over 30 days	0.12 x 30	3.60 USDC
Round-trip cost estimate	500 x 0.50%	2.50 USDC
Days to cover the cost	2.50 / 0.12	about 21 days
Net after 30 days	3.60 - 2.50	1.10 USDC
Gross rate on capital, a year	0.0010% x 8,760 h / 2	4.38% before costs

Two things the example shows. First, only the short earns funding, so the rate on your whole allocation is half the market's rate: MUTEX Funding Farm always quotes returns on capital, not on the short. Second, the cost is paid once, on the way in and out, while funding comes in every hour, so a farm stopped after a few days can lose money even when funding is positive. If BTC rose 10% in the meantime, the token would gain about 50 USDC and the short would lose about 50 USDC, leaving the funding as the result.

Rules and fees

Fees, limits and rules

Minimum allocation: Currently 100 USDC. It is a runtime setting and can change.
Maximum allocation: Set per market, currently 20,000 USDC per farm on every listed market, and never more than your Funding balance.
Farms per market: One farm per market. Several markets can run at once.
Spot leg fee: No MUTEX fee on the farm's spot buy or sell. Price impact still applies.
Short leg fee: The standard MUTEX perp fee on the open and the close, never more than 0.10% of the trade.
Cost estimate: Shown before you start: 0.10% per side for the short plus a per-market price-impact allowance per side, on half your allocation. Currently 0.50% or 0.60% depending on the market.
Leverage: The short always runs at 1x on isolated margin.
Duration: No end date. A farm runs until you stop it or a safety rule closes it.
Tokenized stocks: A farm on a stock-backed market can only start, and only sell its stock leg, while the US market session is open.
Before your first farm: You need USDC in your Funding balance and a Solana deposit address, which your first deposit creates.

Read this before you start

Risks of a funding farm

Negative funding. When the perp trades below spot, shorts pay longs, and MUTEX Funding Farm pays the funding instead of earning it. The farm does not stop by itself when that happens: watch the funding collected on the farm card.
Costs before profit. Entry and exit cost is paid up front in effect. Stopping before funding has covered it locks in a loss.
The short can be liquidated. At 1x isolated, the short is liquidated only if the price roughly doubles. If its loss passes 60% of its margin (the current setting), the farm closes half of both legs and returns the token sale proceeds to Funding; a farm whose short is already smaller than the minimum allocation closes fully instead. If the price jumps past that in one move, the short can still be liquidated, and the liquidation can cost more than the token you hold has gained. The farm then sells the token and returns what is left.
The hedge is close, not perfect. The token and the perp do not always trade at the same price, both legs fill at market prices with slippage, and the short is rounded down to the smallest size the venue allows, which leaves a small unhedged remainder.
Two venues. The token sits on Solana and the short on a separate perp venue. An outage, a halt or a chain problem on either side can delay a start, a de-risk or an exit. If a farm cannot fully enter, it sells back anything it bought and returns your USDC.
Market hours. On tokenized-stock markets, the stock leg can only be sold during the US session, so an exit waits for the market to open.

Who it is for

Who the Funding Farm is for

MUTEX Funding Farm suits someone holding USDC who wants it to work without taking a view on price, and who is willing to leave a farm running for weeks rather than days, since the costs are paid once and funding arrives hourly. It is not a savings account: the return depends on a rate that moves every hour.

If you want to trade price instead, the perps and spot terminal shows the same funding rates on every perp market, and trading bots run rule-based strategies with their own budgets.