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Use this when: The best funding edge is between two perp venues, you want to harvest the rate difference, not run a spot leg. Perp-to-perp is when you run two perpetual positions on different venues and pocket the difference in their funding rates. You’re not betting on direction, you’re delta-neutral, so price movement on one leg cancels the other. Your edge is purely the funding spread between the two venues.

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What Is Perp-to-Perp?

You go short where funding is higher (you receive from longs) and long where it’s lower (you pay less). The net is what you keep. Example: Hyperliquid pays +0.03% per 8h, Drift pays +0.01% per 8h. You short the higher-funding venue and long the lower. Your net is 0.02% per 8h, about 0.06% per day, or roughly 22% APR. The position is hedged: you’re harvesting the funding gap, not price move. There’s no spot leg, so there’s no portfolio margin. Each perp leg has its own margin and liquidation price. Leg risk (one leg filled before the other) and ADL risk (one venue force-closing your profitable leg) both apply. We keep leverage at 2–3x and follow our Safety Mechanisms so you’re not caught off guard.

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What We Have Here

We use Hyperliquid, Drift, Pacifica, and Lighter. We pair venues depending on where the funding spread is best (e.g. Hyperliquid vs Drift for Solana-native pairs) and place orders using each venue’s native SDK so execution is under our control. To keep cost down, we use post-only on both legs where we can, that keeps net execution cost at or below a few bps. We put the taker leg on the more liquid venue (to limit slippage) and the maker leg on the other.

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Execution and Risk

Entry: We hit the faster or more liquid venue first with a taker (IOC or market) so we get a known fill and size. Then we place a maker (post-only limit) on the other venue for that exact size. We don’t leave the second leg hanging: if it’s not filled within a few seconds, we market the rest so we’re not sitting with one leg open and exposed. Exit: We close the less reliable leg first (e.g. the venue with slower finality or thinner book), then the other. We use IOC or market on both: speed over fee savings. In an emergency we cancel everything, market-close the first leg, then market-close the second without waiting for confirmations, and we retry the first leg up to 3× if needed. Risks: No portfolio margin offset means each leg stands on its own. ADL on one venue can close your profitable leg and leave the other naked. That’s why we stick to leverage ≤ 3x, monitor ADL every 30s, and follow Safety Mechanisms: reduce at ADL 4/5, exit at 5/5, and if ADL fires on one leg, we close the other at market immediately. For the full safety framework, pre-entry gates, and auto-close options, see Safety Mechanisms and Auto-close. For the big picture and how this fits with spot–perp, see Overview.