🤖 Extended-Pacifica Cross-Exchange Funding Rate Delta Neutral Bot

Automated delta-neutral bot that captures funding rate spreads between Extended and Pacifica perpetual futures exchanges. Can also be used to farm trading volume while limiting risk (refreshes positions every hold_duration_hours=12 hours by default, but can be changed).

💰 Support this project:

• Extended: Sign up at extended.xyz
• Pacifica: Sign up at app.pacifica.fi and use one of the following referral codes when registering (if one is already taken, try another):

  BYVJRCM791XFCF5K
  ENPVKJ1WAVYNV2Z0
  6HR2WM4C0JQ7D39Q
  411J9J7CYNFZN3SX
  2K7D40A9H53M2TJT
  S1G3A2063Q7410BV
  XH2V3VY9CQ7535CX
  EK8NXX12VDKJJWNK
  6NBS6TT7Y1SV2P53
  E5ZYTD2FVXJA123W
  

📊 Strategy

The bot maintains market-neutral positions by going long on the exchange with lower funding rate and short on the exchange with higher funding rate, collecting the funding rate differential while minimizing directional price risk. Can also be used to farm trading volume while limiting risk (refreshes positions every hold_duration_hours=12 hours by default, but can be changed).

💡 Example: If Extended funding is +10% APR and Pacifica is +50% APR:

• Long position on Extended (pay 10%)
• Short position on Pacifica (receive 50%)
• Net profit: ~40% APR

🚀 Quick Start

1. 📦 Install Dependencies

pip install -r requirements.txt

2. 🔐 Configure Environment

Copy .env.example to .env and add your credentials:

cp .env.example .env

Edit .env with your API keys:

• Extended: EXTENDED_BASE_URL, EXTENDED_API_KEY, EXTENDED_API_SECRET, EXTENDED_ACCOUNT_ID, optional EXTENDED_SUBACCOUNT
• Pacifica: SOL_WALLET, API_PUBLIC, API_PRIVATE

3. ⚙️ Configure Bot

Edit bot_config.json:

{
  "symbols_to_monitor": ["BTC", "ETH", "SOL", "ASTER", ...],
  "leverage": 3,
  "base_capital_allocation": 100.0,
  "hold_duration_hours": 12.0,
  "min_net_apr_threshold": 5.0
}

Key Parameters:

• base_capital_allocation: Base capital in USD (actual position = base × leverage × 0.98 buffer)
• leverage: Target leverage (auto-capped at 20x, reduced if exchange limits are lower)
• hold_duration_hours: How long to hold each position
• min_net_apr_threshold: Minimum funding spread to open position

4. ▶️ Run

python extended_pacifica_hedge.py

🐳 Docker Deployment

# Build the image
docker-compose build

# Build and start
docker-compose up -d

# View logs
docker-compose logs -f hedge-bot

# Stop
docker-compose down

# Rebuild after code changes
docker-compose build && docker-compose up -d

🔄 How It Works

1. 🔍 Analyze: Fetches funding rates from both exchanges every cycle and prints a funding APR table (Extended 8h rate converted to hourly, Pacifica hourly rate)
2. 🎯 Select: Chooses symbol with highest net APR above threshold
3. 📈 Open: Opens delta-neutral position (long/short) with synchronized leverage
4. ⏱️ Hold: Monitors position health and waits for the configured holding period
5. 📉 Close: Closes both positions simultaneously
6. ⏸️ Wait: Brief cooldown before next cycle

🛡️ Safety Features

• ✅ Balance Checks: Confirms both venues have sufficient collateral before opening a position.
• ✅ State Persistence: Saves progress to bot_state_extended_pacifica.json so restarts resume safely.
• ✅ Graceful Shutdown: Attempts to close any open position if a shutdown signal is received.
• ✅ Emergency Closer: python emergency_close.py --force will flatten all legs on both venues using the same environment defaults as the bot.

📈 Funding Calculations

• Extended API returns cumulative 8-hour funding; the bot and test suite convert this to hourly by dividing by 8 before annualising (×8760).
• Pacifica API returns hourly funding; the bot multiplies directly by 24×365 to derive APR.
• Funding snapshots are logged at startup, before opening a position, and during position monitoring so you can compare both exchanges quickly.

💵 Position Sizing Examples

With base_capital_allocation: 100:

Leverage	Safety Buffer	Position Size per Exchange
1x	$98	$98
3x	$98	$294
5x	$98	$490
10x	$98	$980

Position size is further reduced if insufficient margin available (uses 95% of max available).

⛔ Stop-Loss Levels

Stop-loss is triggered by the worst leg PnL (not total PnL) to protect against one-sided losses that could lead to liquidation.

Leverage	Stop-Loss %	Capital Loss at Trigger	Buffer Before Liquidation
1x	-50%	50%	~50%
3x	-20%	60%	~40%
5x	-12%	60%	~40%
10x	-6%	60%	~40%
20x	-3%	60%	~40%

When triggered: Both positions are immediately closed via market orders, PnL is calculated, and the bot enters a waiting period (5 minutes by default) before starting a new cycle.

📊 Monitoring

The bot displays comprehensive color-coded status during position holding (every 60 seconds by default):

Status includes:

• Position timing and time remaining
• Position sizes and notional value
• Account balances and total equity
• Long-term PnL since bot start (tracked via initial capital)
• Current leverage on both exchanges
• Real-time funding rates and spread
• Individual leg PnL (Extended and Pacifica)
• Total unrealized PnL
• Risk metrics: Stop-loss level, current PnL %, worst leg performance, distance to stop-loss

🚨 Emergency Position Closer

Close all open positions on both exchanges:

# Interactive mode - shows positions and asks to press Enter to confirm
python emergency_close.py

# Close specific symbol only
python emergency_close.py --symbol BTC

# Close all without confirmation
python emergency_close.py --force

# Preview without executing
python emergency_close.py --dry-run

The script scans symbols from bot_config.json and displays all open positions with PnL. In interactive mode, simply press Enter to confirm closing (or Ctrl+C to cancel).

📊 Utility Scripts

Check market conditions before running the bot:

# Check 24h trading volume for all symbols
python check_24h_volume.py

# Check mid-price spreads between exchanges
python check_spreads.py

# Use custom config file
python check_24h_volume.py --config custom_config.json
python check_spreads.py --config custom_config.json

check_24h_volume.py: Displays 24h trading volume in both base currency and USD for all symbols on both exchanges. Helps identify liquid markets.

check_spreads.py: Shows bid/ask/mid prices and spread percentages between Extended and Pacifica. Helps identify symbols with tight spreads for optimal trading.

🧪 Testing

Test your setup with the included test suite:

# Test Extended connection and balance
python test/test_extended_balance.py

# Test Pacifica connection and balance
python test/test_pacifica_balance.py

# Test funding rates
python test/test_extended_funding.py
python test/test_pacifica_funding.py

# Test positions
python test/test_extended_positions.py
python test/test_pacifica_positions.py

# Full lifecycle test (opens and closes positions - uses real funds!)
python test/test_extended_market_order.py
python test/test_pacifica_market_order.py

See test/README_TESTS.md for detailed documentation on all available tests.

Note: Market order tests place real orders and use real funds. Start with small amounts.

📁 Files

• extended_pacifica_hedge.py - Main bot
• emergency_close.py - Emergency position closer
• check_24h_volume.py - Volume checker utility
• check_spreads.py - Spread checker utility
• extended_client.py - Extended exchange wrapper
• pacifica_client.py - Pacifica exchange client
• bot_config.json - Configuration
• bot_state_extended_pacifica.json - Persistent state (auto-created)
• logs/extended_pacifica_hedge.log - Log file (resets on start)

⚠️ Important Notes

• Single Position: Bot manages one position at a time
• Symbol Filtering: Symbols not on both exchanges are automatically ignored
• Volume & Spread Filtering: Checked at startup and before each cycle to ensure liquid, efficient markets
  • Minimum $50M 24h volume on Pacifica
  • Maximum 0.15% spread between exchanges
• Cycle Tracking: Cycle number persists across restarts
• Initial Capital: Captured at first run and used for long-term PnL calculation
• Monitoring Frequency: Position checked every 60 seconds by default (check_interval_seconds)
• Stop-Loss Protection: Based on worst performing leg, not total PnL
• Log Reset: Log file resets on every bot start
• UTC Timestamps: All times displayed in UTC

📚 Documentation

• CLAUDE.md - Detailed architecture and development guide for Claude Code
• test/README_TESTS.md - Test suite documentation
• .env.example - Environment variable template

📋 Requirements

• Python 3.12+
• Active accounts on Extended and Pacifica
• Sufficient balance on both exchanges (~$50+ recommended per exchange)
• API credentials with trading permissions

📜 License

This bot is for educational and research purposes. Use at your own risk. Always test with small amounts first.