Borrowing cryptocurrency to short and buying contracts to long in negative funding fees, allowing you to rake in substantial amounts of money several times. However, one instance with Coai resulted in losing all your principal.
Unlike the traditional method of earning money from margin calls, if the leverage is very high, the price difference is at most 10%-15%. If the position is too large, you can still cut your losses. Contracts have depth.
Moreover, if the price difference is too large, there are other arbitrageurs who will help you arbitrage and reduce the price difference.
