What makes LINK different
LINK trades with deep enough liquidity to hold a funding sign for a while, which makes the rate more informative than in thin markets, but also slower to warn of a turn.
The main LINK failure mode
A stable-looking LINK carry can quietly erode when spot rotates and the perp basis compresses over several sessions rather than in one move.
The wallet-level question
Does the expected carry survive several days of a flat-to-adverse LINK tape?
LINK 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 | Track how many hours the sign has persisted |
| 2 | Compare funding against realised volatility |
| 3 | Check whether the wallet already holds correlated infra exposure |
| 4 | Confirm fees do not eat the spread at this size |
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.