What makes AVAX different
AVAX sits in the band where a funding receipt can be real but entry and exit costs matter as much as the rate itself.
The main AVAX failure mode
The carry is calculated on notional while the actual fill is worse, so a modest APR disappears into spread and slippage on both legs.
The wallet-level question
Does the expected funding still beat round-trip costs at this wallet’s size?
AVAX funding decision checklist
Funding is peer-to-peer and settles hourly. The worked example below is arithmetic, not a live quote or return forecast.
| Check | What to verify |
| 1 | Estimate slippage at intended size, both directions |
| 2 | Compare funding APR against total round-trip cost |
| 3 | Check whether open interest supports an orderly exit |
| 4 | Confirm the sign has held longer than a single session |
Worked example: at $10,000 oracle notional, an hourly funding rate of 0.01% implies a $1 payment for that interval before trading fees, slippage, and price PnL. Payment direction depends on the sign of the rate and the side of the position.