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.

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.

Exclusive Products

1. Exclusive for New Users

• Potential APR rate: 0.01% - 100%
• Purchase quota limit: 1,500 USDT
• Auto reinvesting: Supported
• Auto rebalancing: Supported
• Duration: Flexible, no lock-up period
• Asset distribution: Please refer to the product page under [Details] - [Introduction] - [Current Asset Distribution]
  All new users are welcome to use this product until the purchase quota limit is reached.

2. VIP-Only Product

• Potential APR rate: 0.01% - 50%
• Purchase quota limit: Based on the user's VIP level
• Auto reinvesting: Supported
• Auto rebalancing: Supported between BTC, ETH & SOL
• Duration: Flexible, no lock-up period
• Asset distribution: Please refer to the product page under [Details] - [Introduction] - [Current Asset Distribution]
  All VIP users are welcome to use this product until the purchase quota limit is reached.

Preferred Products

1. Stable

• Potential APR rate: 0.01% - 30%
• Purchase quota limit: 100,000,000 USDT
• Auto reinvesting: Supported
• Auto rebalancing: Supported between BTC, ETH & SOL
• Duration: Flexible, no lock-up period
• Asset distribution: Please refer to the product page under [Details] - [Introduction] - [Current Asset Distribution]
  All users are welcome to use this product until the purchase quota limit is reached.

2. Customizable

• Potential APR rate: 0.01% - 100%
• Auto reinvesting: Supported
• Auto rebalancing: Supported between BTC, ETH & SOL
• Duration: Flexible, no lock-up period
• Asset distribution: Please refer to the product page under [Details] - [Product]
  
• Purchase quota limit: Please refer to the product page under [Details] - [Purchase] - [AI Recommendation] - [Total Quota]
  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.
  

3. Stable (USDC)

• Potential APR rate: 0.01% - 30%
• Purchase quota limit: 100,000,000 USDC
• Auto reinvesting: Supported
• Auto rebalancing: Not supported
• Asset distribution: BTC & ETH
• Duration: Flexible, no lock-up period
  All users are welcome to use this product until the purchase quota limit is reached.

4. For Growth Funds Only

• Potential APR rate: 0.01% - 50%
• Purchase quota limit: Based on the user's Growth Funds USDT amount
• Auto reinvesting: Supported
• Auto rebalancing: Not supported
• Asset distribution: BTC & ETH
• Duration: Until the growth fund expires
  All users who received Growth Funds are eligible to use this product. To learn more about what Growth Funds are, please refer to “Pionex Growth Fund”.

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.

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.

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

Arbitrage 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.

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.

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 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.

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.

Please get in touch with Pionex Support if you have any other questions.