Basis / Cash & Carry
Overview

Basis / Cash & Carry

FYOS supports basis trading (also called cash and carry) as a second strategy family alongside perpetual funding arbitrage.

What Is Basis?

A basis trade captures the spread between a spot asset and its delivery futures contract.

When the futures price exceeds the spot price (contango), you can:

  1. Buy the spot asset
  2. Sell the delivery futures contract
  3. Hold until expiry when prices converge
  4. Capture the spread as profit

This is called cash and carry because you carry the spot position against the futures hedge.

How FYOS Models Basis

FYOS computes basis opportunities across:

  • Binance, Bybit, and OKX delivery futures
  • Mapped spot instruments on the same exchange
  • Quarterly and other listed expiry contracts

The core computation flow:

spot price + futures price
    → basis spread (%)
    → gross basis APR (annualized)
    → fee + slippage adjustments
    → trust + capacity qualification
    → model_adjusted_basis_apr

What FYOS Does Not Promise

Basis opportunities are not risk-free:

  • Execution costs (fees, slippage) reduce realized returns
  • Dual-leg capacity limits deployable size
  • Trust qualification gates surface-ready opportunities
  • Exchange, liquidity, and operational risks remain

FYOS presents basis opportunities with reality-adjusted metrics, not raw spreads.

Key Principle: Gross Is Not Deployable

The visible basis spread (gross_basis_apr) is not the same as the return you can capture.

The primary execution-aware metric is:

model_adjusted_basis_apr — basis APR after fee, slippage, and trust adjustments

Always interpret basis opportunities through model_adjusted_basis_apr, not raw gross spreads.

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