On Aug. 11, TradingBeats, formerly Hyperinsight, said Hynix ADR mapping contract SKHY was still trading at about a 36.06% premium to SKHX, and that premium has remained elevated for an extended period.
For the address beginning with 0x803, which has already built a spread position in the eight-figure range, the question is no longer only whether the premium eventually converges. The speed of that convergence is now central to whether the trade makes money. Based on a static calculation using current funding rates, the two legs add about $27,500 in funding cost for every extra day the position is held. To cover that expense through spread compression alone, the premium of SKHY over SKHX would need to narrow by at least 0.67 percentage points per day.
Prices and current premium
A snapshot cited by TradingBeats showed SKHX at $1,023 and SKHY at $139.19. Using a ratio of 10 SKHY to 1 SKHX, the current ADR premium comes to about 36.06%.
The 0x803 address position
The address had previously opened a roughly neutral spread trade: long 5,400 SKHX worth about $5.524 million, while short 40,000 SKHY worth about $5.568 million. The combined notional size of the two legs was about $11.092 million.
The core idea behind the trade is to bet that the richer-valued SKHY will fall back relative to SKHX. But the report noted that this 36% spread is not something the trader can wait on indefinitely.
Funding rates raise the break-even bar
SKHX currently carries an hourly funding rate of about +0.01961%, which means the address pays funding on the long leg. SKHY has a funding rate of about -0.00109%, and the address is also on the paying side there as a short. Combined, the two legs cost about $1,144 per hour in funding, or about $27,500 per day. Over a week, that rises to roughly $192,200.
If SKHX stays unchanged at $1,023, then SKHY would need to fall from $139.19 to about $138.50 just to earn back one day of funding. That would equal a drop of about 0.49%. In that case, the ADR premium would need to shrink from 36.06% to about 35.39%, meaning at least 0.67 percentage points of compression in a single day.
Even if the entire convergence came through a rise in SKHX instead, the result is similar. SKHX would need to climb to about $1,028.08, outperforming SKHY by about 0.50% over one day, just to cover the funding cost.
If rates hold for seven days
If current funding rates remain in place for seven straight days, and the whole convergence comes from a decline in SKHY, then the ADR premium would need to fall from 36.06% to about 31.36%, a cumulative narrowing of roughly 4.70 percentage points over the week. Even if the move comes entirely from a rise in SKHX, the premium would still need to compress to about 31.49%.
From the perspective of additional funding cost, that level of convergence would only bring the trade to break-even.
In other words, the trader is not dealing with a fixed question of whether a 36% premium will eventually revert. If the premium narrows by less than about 0.67 percentage points per day, the arbitrage return may fail to keep up with the extra funding expense, pushing the profitability threshold lower over time.
TradingBeats said its on-chain perpetuals and address analysis tool is now live, with support for real-time Hyperliquid data, address tracing and whale activity analysis.