【Risk Breakdown】Is arbitrage with Alpaca (ALPACA) really a guaranteed profit?

At 4 AM today, the funding rate for Alpaca (ALPACA) finally turned from negative to positive after several days. Many people excitedly entered the market: buying spot, opening short contracts, and easily earning funding fees! Even smarter arbitrageurs have their eyes on the negative funding rate on the Sesame Exchange, thinking about profiting from the spread: going long on Sesame while going short on Binance, collecting funding fees from both sides, plus waiting for the contract price to revert, thinking they can 'eat and take' at the same time, guaranteeing profit without loss.

But is it really that simple?

As of 1 PM today, this 'seemingly beautiful' arbitrage game has already resulted in significant losses for some.

The price difference between the ALPACA contracts on Binance and Sesame has widened to $10,000 for every 100,000 coins!

And the funding fee you receive? It’s only around $3,000.

The result is——

You didn't profit from the arbitrage; instead, it became the 'fuel' for the market's pull.

If you close your position now, you’ll directly lose several thousand; if you don’t close? You might continue to hold and face even greater losses, or even the risk of liquidation.

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【One-sentence Summary】

This is not arbitrage; this is 'throwing your head in'.

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【Risk Warning】

It is not recommended to participate in any arbitrage in the last one or two days for coins that are about to be delisted.

Better to eat the bull's head than the snake's tail – this is the experience learned through blood from seasoned traders in the crypto world.

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