Recently, I have been focusing on the POWER/USDT Spot and quarterly contracts, and I found something interesting.

The price difference has been pulled to 1.5%, and the funding rate has turned positive, calculated at 0.08% per 8 hours. In this case, the arbitrage strategy is to short the overvalued contracts while buying Spot, locking in the price difference and simultaneously earning the funding rate.

Looking at the numbers: the price difference itself has a yield of 1.5%, and the daily fee rate of 0.24% translates to an annualized rate of 87.6%. It sounds quite alarming, but after deducting the bilateral handling fee of 0.2% and the cost of funds, the net annualized rate can drop to around 65%. The problem is that the volume of Spot has recently shrunk significantly, with trading volume decreasing by 68.8%, which makes it easy to incur slippage during hedging. If the market moves extremely in one direction, the pressure from margin is also a hidden risk.

So my choice now is **to wait a bit**.

The price difference needs to stabilize above 1.2%, or the spot volume must break through to the position of 0.315 USDT before it is worth considering taking action. If you really want to enter the market, buy the spot part at 0.310 USDT and hedge with a contract short position. Set the stop loss when the price difference narrows to 0.8%, with the target either waiting for the price difference to return to 1.8%, or exiting when the funding rate reverses.

In risk management, position must be controlled, and it is best to choose exchanges with good liquidity to execute this strategy.