Funding Farming in MagicTradeBot requires specific trading modes to operate because it relies on hedged Spot + Futures positions to capture funding fees while minimizing directional market exposure.
🔹 Required Trading Modes
Spot Trading Enabled
The bot must be able to buy and hold the underlying asset
Spot positions provide the base for the hedge against futures positions
Futures Trading Enabled
The bot must be able to open short or long futures positions
- Futures positions are used to offset directional price risk and capture funding fees
🔹 Unsupported Modes
Wallet-Based Exchanges Only (e.g., Hyperliquid)
- These exchanges do not support hedged Spot + Futures strategies
- Funding Farming cannot function because the necessary trading pairs or margin mechanics are unavailable
Futures-Only Exchanges Without Spot Access
- Spot position is required to hedge futures exposure
- Without it, the strategy becomes directional and high-risk, defeating the delta-neutral design
🔹 Activation Requirement
To enable Funding Farming:
TradingMode: "funding-farming"- Both Spot and Futures trading must be active in your bot settings
- Ensure the exchange supports both trading types and hedging
🔹 Key Takeaways
| Requirement | Purpose |
|---|---|
| Spot Trading Enabled | Provides underlying asset for hedging |
| Futures Trading Enabled | Allows short/long positions to capture funding fees |
| Unsupported Exchanges | Wallet-only or futures-only platforms cannot support the strategy |
Summary: Funding Farming requires both Spot and Futures trading enabled on exchanges that support hedged positions. Without either, the bot cannot operate in a delta-neutral, funding-capturing mode.