Formulas & Calculations

Funding History Search uses a set of formulas to normalize rates, calculate APR, and compute PnL. This page describes the math behind the interface.

Rate Normalization

Exchanges publish funding rates at different intervals:

• 8 hours — most centralized exchanges (Binance, OKX, Bybit, etc.)
• 1 hour — decentralized exchanges (Hyperliquid, Drift, etc.)

To compare rates on a common basis, all values are normalized to hourly BPS (basis points per hour):

hourlyBps = rate / intervalHours

Example:

• Binance: rate = 0.03% per 8h → hourlyBps = 0.03 / 8 = 0.00375
• Hyperliquid: rate = 0.005% per 1h → hourlyBps = 0.005 / 1 = 0.005

APR (Annual Percentage Rate)

APR is derived from the hourly rate:

APR = hourlyBps × 87.6

Where the constant 87.6 comes from:

hourly_rate / 10000 × 24 × 365 × 100 = hourlyBps × 87.6

Example:

• hourlyBps = 0.00375 → APR = 0.00375 × 87.6 = 0.3285%

BPS (Basis Points)

1 BPS = 0.01%. A rate of 0.03% equals 3 BPS.

Spread

The spread is the difference between the maximum and minimum funding rates across the selected exchanges:

spread = max_rate − min_rate

The spread represents the potential profit from an arbitrage position (long on the exchange with the minimum rate + short on the exchange with the maximum rate).

PnL Calculation

Portfolio position PnL is computed using Riemann sum integration over historical hourly rates:

PnL = investment × Σ(shortBps − longBps) / 10000 − openingCost

Where:

• investment — position size in USD
• shortBps — funding rate on the short exchange at each hourly interval
• longBps — funding rate on the long exchange at each hourly interval
• openingCost — costs incurred when opening the position (fees, slippage)

The summation runs over every hourly interval from the entry date to the current moment.

Why Integration Instead of an Average?

Funding rates change every 1 to 8 hours. Simply multiplying the average rate by time produces an inaccurate result. Integrating over each individual interval accounts for the actual rate dynamics and yields a precise PnL figure.

Smart Score

Smart Score is a composite metric that evaluates how suitable a ticker is for funding arbitrage. It considers:

• Spread magnitude — higher is better
• Stability — lower rate volatility is better
• Consistency — the spread should remain steady across the entire analysis period

Tickers with a high Smart Score are the strongest candidates for long-term arbitrage positions.