In the Velorax framework, volatility harvesting describes a proposed approach to identifying and evaluating temporary pricing differences across related crypto markets. The research focus includes relationships between spot prices, futures prices, perpetual funding rates, options, and trading venues.

For example, an asset’s spot price and futures price may move apart. A paired strategy could seek to benefit from that relationship changing, while managing some directional exposure. However, a price gap is not guaranteed profit. Funding charges, transaction fees, slippage, market movements, and execution failures can change the result.