Methodology
Perpetual swaps fund every 8 hours. The funding rate is paid by the side with dominant exposure. Positive funding: longs pay shorts (market is leveraged long). Negative funding: shorts pay longs (leveraged short). Extreme funding indicates crowded positioning and squeeze risk.
Per-coin regimes (per 8h funding):
> +0.03% → HIGHLY BULLISH LEVERAGE (≈33% annualized · long squeeze risk)
+0.01–0.03% → BULLISH LEVERAGE
-0.01–0.01% → BALANCED (no major tilt)
-0.03 to -0.01% → BEARISH LEVERAGE
< -0.03% → HIGHLY BEARISH LEVERAGE (short squeeze setup)
Crowding flag appears when |z-score vs 30 periods| > 2 — current funding is statistically extreme relative to recent positioning.
Composite regimes: EUPHORIC_LEVERAGE (≥3 coins highly bullish — top warning), CAPITULATION_LEVERAGE (≥3 coins highly bearish — contrarian long), HIGH_DISPERSION (cross-coin disagreement >10bps — trade individual names not index).
Source: www.okx.com/api/v5/public/funding-rate + /open-interest + /market/index-tickers · refreshed hourly (funding settles every 8h, but intra-period drift matters).