#止损策略 **Fun Coin Arbitrage Pitfall: A Failed Funding Rate Trap**

I cut my losses in time; the volatility was too high!

I had just purchased a lesser-known coin, Fun, worth 1300U, planning to extract funding rate profits from the market, but encountered restrictions: **Fun coin cannot be transferred to the margin account, and the borrowing pool depth is insufficient**, leading to the failure of my strategy.

I originally planned to hedge the price difference by "shorting spot + longing contracts" and earn negative funding rate profits. However, lesser-known coins often face **liquidity traps**—the lack of leverage features on exchanges, high borrowing costs, and even the inability to open positions. If contracts are forcibly operated, the lack of liquidity may lead to an inability to close positions, ultimately resulting in liquidation.

This incident serves as a warning: **Arbitrage requires pre-validation of feasibility**. Before operating, be sure to confirm whether the exchange supports coin leverage/contracts, the depth of the borrowing pool, and the fee rules to avoid losses due to infrastructure limitations. The risks of lesser-known coins are significantly higher than mainstream coins, and high returns often come with fatal hazards that prevent exit.