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Arbitrage

What is Pionex Arbitrage?

Arbitrage is a low-risk cryptocurrency trading strategy. It involves simultaneously purchasing cryptocurrency in the spot market while taking an equivalent short position in the perpetual futures market, effectively hedging against price volatility. This strategy primarily generates returns through funding fees from perpetual futures. Depending on market conditions, the potential annualized yield can range from 10-50% during bear markets and exceed 100% in bull markets.

Past performance does not guarantee future results.


What Arbitrage Products Does Pionex Offer?

Pionex mainly offers Exclusive Products and Preferred Products. Products under the Exclusive category require users to meet certain conditions, while all users can access the Preferred products.


Benefits of Pionex Arbitrage Products

  • Flexible access with no lock-up: subscribe or redeem anytime

  • Auto-reinvesting: Supported for seamless compounding

  • Insurance fund protection: Buffers negative-rate periods

  • Low minimum to get started, from 10 USDT/USDC

Product Comparison

Product

Eligibility

Potential APR Range

Quota

Auto-Rebalance

Fund Utility Rate

Insurance Fund

Exclusive for New Users

New users

0.01–100%

1,500 USDT

90%

5%

VIP-Only

VIPs

0.01–50%

✅ BTC/ETH/SOL

90%

0% (platform-covered)

Stable

All users

0.01–30%

100 million USDT

✅ BTC/ETH/SOL

90%

10%

Customizable

All users

0.01–100%

See product page

90%

20%

Stable (USDC)

All users

0.01–30%

100 million USDC

✅ BTC/ETH

90%

10%

Growth Funds Only

0.01–50%

Per Growth Fund balance

✅ BTC/ETH

80%

20%

Information about Customizable Product

Asset distribution: Please refer to the product page under [Details] - [Product]​

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Purchase quota limit: Please refer to the product page under [Details] - [Purchase] - [AI Recommendation] - [Total Quota]​

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Users can utilize the AI Recommendation function to quickly filter out products with higher APR that have available quotas, allowing them to easily purchase suitable products for better returns. All users are welcome to use this product until the purchase quota limit is reached.

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Note: All the attributes mentioned above may change due to product updates or market fluctuations. Therefore, we recommend users refer to the Arbitrage product page in the app or on the web for the latest information.


How to Invest in Arbitrage

Although Pionex offers various arbitrage products, the purchase process for each product is generally similar. Below, we will demonstrate the purchase steps using the “Exclusive for New Users” product on the web and app.

In APP:

Step 1: Download/update and log in to the latest version of the Pionex app to access Arbitrage Products.

Step 2: Click on [Earn] in the bottom right corner, then select [Arbitrage]. Choose the product you wish to invest in—in this case, “Exclusive for New Users”. Finally, click the [Purchase] button.

Step 3: Input the desired investment amount, then click [Purchase] followed by [Confirm] to complete your purchase.

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On Web:

Step 1: Open the Pionex website, log in to your account, click on [Earn] in the top menu bar, then click on [Arbitrage]. Choose the product you wish to invest in—in this case, “Exclusive for New Users”. Finally, click the [Purchase] button.

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Step 2: Input the desired investment amount, then click [Purchase] followed by [OK] to complete your purchase.

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FAQ

Q: How can I release the profit?
A: After selecting the arbitrage product you invested in, click [More] - [Release Rewards] - [Release All] to transfer your profits to your primary account.

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Q: How can I redeem my invested principal amount?
A: After selecting the arbitrage product you invested in, click [More] - [Redeem], enter the amount you wish to redeem, and click [Confirm] to withdraw your principal.

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Q: How can I view the asset distribution of the subscribed product?

A: Please refer to the product page under [Details] - [Introduction] - [Current Asset Distribution]

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Q: How frequently is the profit distributed to my account?

A: Once you purchase an arbitrage product, your order will start earning funding fees every 8 hours. The earnings are credited repeatedly until you redeem your principal.

Q: Why I have subscribed at 7:00 (UTC), but did not receive interest at 8:00 (UTC)?

A: After you have subscribed a arbitrage product, it will use the next interest distribution time as starting time. After 8 hour, which is 16:00 (UTC), it will distribute interest.

Q: What is [Exclusive for New Users] product? If I have sign up Pionex for a long time ago, am I still eligible?

A: Yes. There’s no time limit—eligibility isn’t tied to account age. You can purchase it anytime while the subscription quota is available.

Q: What if the pair funding rate settlement frequency is 4 hours? So I receive the interest every 4 hours?

A: No, it will combine the interest generated within the 8 hours and distribute it accordingly with the schedule.

Q: Is there a lock-up period? I received a message stating that redemption is unavailable and must wait for a certain period.

A: There is no lock-up period, and you can redeem freely. However, due to a large number of orders being processed during the funding fee settlement, earnings are credited within the first 15 minutes after each 8-hour settlement cycle. During this 15-minute window, redemption is temporarily unavailable. After that, you can redeem at any time.

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Q: How can I use a bonus coupon for an arbitrage product?
A: Please refer to the 'Arbitrage Bonus Coupon' article for detailed instructions.

Q: In the case of a negative funding rate, will I incur any losses?
A: No, because the Pionex arbitrage product is protected by an insurance fund. A certain percentage of arbitrage profits is withheld to cover potential losses.

Q: When opening and closing spot and futures positions, there may be a spread that leads to losses. Will these losses also be covered by the insurance fund?
A: Yes, losses caused by extreme market conditions will also be covered by the insurance fund.

Q: How can I know how much of my arbitrage profits are withheld for the insurance fund?
A: The exact percentage of arbitrage profits withheld for the insurance fund varies depending on the arbitrage product you use. We recommend checking the instruction page for each arbitrage product, where the insurance fund rate is specified.

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Q: I’m currently a VIP and have subscribed to the “VIP Exclusive” arbitrage product. If my VIP status expires, will my allocation be forcibly closed, or will anything else change?

A: It won’t be closed automatically; the funds you’ve already subscribed will continue to operate as usual. However, if you redeem and then try to subscribe again, your VIP-exclusive allocation will show as 0, and you won’t be able to subscribe to VIP-type products at that time.

Q: Regular arbitrage products have a risk reserve. Why does the “VIP Exclusive” arbitrage product have none (shows 0%)?

A: This is a VIP-only benefit. The platform covers the risk reserve cost for VIP arbitrage.

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