> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pacificalens.xyz/llms.txt
> Use this file to discover all available pages before exploring further.
# Scan cross-exchange funding rate arbitrage opportunities
> Scan real-time funding rate differentials between Pacifica, dYdX, HyperLiquid, and Aster to capture delta-neutral yield — no directional exposure required.
The Arbitrage Scanner compares live funding rates across Pacifica and external perpetuals exchanges to surface opportunities where the same asset pays different rates on different platforms. When a meaningful spread exists, you can open opposite positions on each exchange to collect the difference three times per day — without taking a directional bet on price.
## How funding rate arbitrage works
Funding rates on perpetuals exchanges are paid between long and short position holders every eight hours to keep the perpetual price anchored to spot. When Pacifica's funding rate diverges significantly from another exchange's rate for the same asset, a spread opens up.
To capture this spread:
1. Go **long** on the exchange where the funding rate is lower (or negative) — you receive funding payments on that leg.
2. Go **short** on the exchange where the funding rate is higher — you pay less, or also receive, on that leg.
3. Because you hold equal-and-opposite positions, price movements cancel out. You collect the rate spread three times per day (every 8 hours).
The annualized return estimate is calculated as:
```
APR = |Rate_A − Rate_B| × 24 × 365 × 100
```
Higher APR means a wider spread and greater yield potential, though high-APR opportunities tend to close quickly as other arbitrageurs enter.
## Supported exchanges
The scanner compares Pacifica against three external perpetuals venues simultaneously:
| Exchange | Color label |
| ----------- | ------------------------- |
| Pacifica | Long/Short exchange label |
| HyperLiquid | Long/Short exchange label |
| Aster | Long/Short exchange label |
| dYdX | Long/Short exchange label |
Every row in the scanner always includes Pacifica on one side of the trade. Opportunities where Pacifica is not involved are filtered out.
## Reading the scanner
Each row in the results table represents the best arbitrage pair found for that asset. The columns break down as follows:
| Column | What it shows |
| -------------- | ---------------------------------------------------------- |
| Symbol | The perpetual market (e.g., BTC, SOL) |
| Tier | Quality badge based on annualized APR |
| Long position | Exchange and funding rate where you go long |
| Short position | Exchange and funding rate where you go short |
| Spread rate | Absolute rate difference, displayed per 8h |
| Annualized APR | Estimated annual return if the spread holds |
| Strategy | Plain-English summary: "Long Pacifica / Short HyperLiquid" |
**Tier badges** classify opportunities by APR:
| Badge | Threshold | Meaning |
| ----- | ---------- | --------------------------------------------- |
| HIGH | ≥ 50% APR | Strong opportunity — typically short-lived |
| MED | 20–50% APR | Sustainable spread, moderate risk |
| LOW | \< 20% APR | Small spread, may not cover fees and slippage |
**LONG / SHORT exchange labels** appear as colored badges under each position column, indicating which platform carries each leg of the trade. You sort the full table by APR, symbol, spread rate, or tier using the column headers.
The scanner refreshes automatically every 30 seconds. Use the tier filter buttons to focus on HIGH or MED opportunities, and use the exchange filter to narrow results to a specific counterparty exchange.
## Alert Bot
The Alert Bot monitors the scanner on a schedule and notifies you through Telegram or Discord when new opportunities cross your APR threshold. It sends notifications only — it does not open or execute trades automatically.
Open the **Arbitrage** page and click the **Arbitrage Bot** tab in the sub-navigation.
Drag the **Minimum APR Threshold** slider to the percentage above which you want to receive alerts. The default is 20%. Opportunities below this threshold are ignored.
To receive **Telegram** alerts: create a bot via @BotFather, add it to your channel or group, paste the bot token and your Chat ID into the corresponding fields, and click **Test** to confirm delivery.
To receive **Discord** alerts: open your server, go to **Edit Channel → Integrations → Webhooks → New Webhook**, copy the webhook URL, and paste it into the Discord Webhook URL field.
You can enable both channels simultaneously. Browser notifications are also available as a fallback.
Choose how often the bot scans for new opportunities: **5**, **10**, or **30 minutes**. Shorter intervals catch opportunities faster but consume more API quota.
Click **Start Alerts**. The **Activity Log** on the right records the last 20 alert events with timestamps — successful sends appear in green, errors in red. Click **Stop Alerts** at any time to pause monitoring.
Funding rate arbitrage is one of the few strategies in crypto that generates yield without directional exposure. Because you hold equal long and short positions, price moves do not affect your PnL — only the funding rate spread matters. This makes it a useful tool for deploying idle capital during uncertain market conditions.
Funding rates update in real time. The spread displayed in the scanner reflects the current rates fetched from each exchange and recalculates automatically every 30 seconds. Rates can change between the time you spot an opportunity and the time you open your positions, so always verify the current rates on both exchanges before executing.