Hypothetical Crypto Contracts Could Hedge Funding-Rate Costs

A hypothetical crypto derivatives contract could let perpetual-futures traders hedge funding payments separately from token prices, preserving market exposure while limiting one cost that can erode returns or pressure margin. A trader holding $100,000 of Ether (ETH) long exposure, for example, may value the position for potential price appreciation but face rising funding bills while keeping it open. Closing the position would stop those charges but also remove the exposure the trader wanted. Reducing the position could lower the cost, but it would also reduce the amount of price exposure.