FYOS Documentation is synchronized to the current clean-core beta baseline.

Crowding Risk

How many others are chasing the same opportunity?

Filter opportunities by crowding level

Definition

Crowding Risk quantifies how many other traders are likely pursuing the same funding arbitrage. High crowding leads to:

Faster rate normalization
Increased slippage
Reduced capacity for new entrants

Formula

C_{score} = w_1 \times \Delta OI + w_2 \times D_{ratio} + w_3 \times V_{rate}

Where:

$\Delta OI$ = Open interest momentum (normalized)
$D_{ratio}$ = Order book depth relative to typical
$V_{rate}$ = Rate of funding rate changes

Interpretation

Score	Level	Implication
0-30	Low	Opportunity not crowded, good capacity
30-50	Moderate	Some competition, monitor closely
50-70	High	Significant competition, reduced returns
70-100	Very High	Heavily crowded, avoid or reduce size

Visual Indicators

In the Screener, crowding is shown with color-coded indicators:

Green — Low crowding
Yellow — Moderate crowding
Orange — High crowding
Red — Very high crowding

Impact on Returns

Crowding directly reduces survivable APR:

APR_{adjusted} = APR_{base} \times (1 - C_{impact})

Where $C_{impact}$ is derived from the crowding score.

Crowding	Typical Impact
Low (20)	-5% to returns
Moderate (40)	-15% to returns
High (60)	-30% to returns
Very High (80)	-50%+ to returns

What Drives Crowding

Social signals — High-profile mentions increase crowding rapidly
Extreme rates — Outlier funding rates attract attention
Cross-exchange arb — Easy arb opportunities get crowded fast
Correlation — When many assets have similar setups

Related Metrics

Capacity — Maximum position size
Survivable APR — Adjusted for crowding
Edge Reliability — Overall confidence

Half-life Capacity

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