The funding rates have been a bit outrageous these days, and everyone in the group is asking whether to take the other side and eat the fees. To put it simply, when the rates are extreme, I first think: who is actually paying this fee, and why are people rushing to leverage up? Is it a subsidy or just emotion? If the market is just flocking in the same direction, taking the other side looks tempting, but once volatility amplifies, the fees you pay might not even cover a single liquidation’s slippage.

My own approach is rather cautious: if I really want to participate, I only use small positions and hedge with spot, testing the waters. Most of the time, I just avoid the volatility altogether, sticking to pools that aren’t so flashy but have clear mechanisms, so I can at least understand where the profits come from. Recently, I’ve been talking about rate cut expectations, the dollar index, and risk assets rising and falling together… Anyway, I can’t really predict macro trends, and the more I try, the more I want to hold heavy positions, which is dangerous. First, just stay alive, and wait until the rates return to normal.