When funding rates hit an extreme, my first reaction isn't "rush in," but rather to brew a cup of tea and calm my nerves... To be honest, by that time market sentiment has already twisted into a knot. Of course, taking the opposite side of the trade is tempting; standing on the right side is like picking up free money, but most of the time I prefer to hide, willing to earn less rather than get pierced by a needle through my margin. Occasionally, if I really need to go against the trend, I’ll split my position into very small parts to leave myself an exit route, otherwise a wave of tugging can crush my mindset.

These past couple of days, I’ve seen the "compound yield" from re-pledging/shared security being criticized again as a scam, which actually resembles the illusion of funding rates: everyone thinks they’re holding the safest layer, but when volatility hits, all layers start trembling. Anyway, my current principle is that extreme rates = survive first, no matter how good your feel is, don’t think of yourself as a god.