The Core Idea: This strategy exploits the difference in funding rates for the same perpetual futures contract on two different exchanges. You simultaneously open two opposite positions:

• Long Position (Buy): On the exchange with a lower (often negative) funding rate. You will pay a small fee or even receive a rebate.
• Short Position (Sell): On the exchange with a higher (positive) funding rate. You will receive a funding payment.

Your profit is the difference between the funding payment you receive and the one you pay. Since your long and short positions hedge each other, you are not exposed to the coins price movements.