The mathematics of compounding explained simply. Why reinvesting your monthly earnings is the single most powerful thing you can do. Real numbers. Zero risk.
Compounding means earning returns not just on your original capital, but also on all the returns you have already earned. Every month you reinvest your earnings, your earning base grows — and next month you earn more. This cycle repeats, and over time the growth becomes exponential.
| Month | Balance | Monthly Gain | Total Gain |
|---|---|---|---|
| Start | $1,000 | — | — |
| Month 1 | $1,135 | +$135 | +13.5% |
| Month 3 | $1,459 | +$180 | +45.9% |
| Month 6 | $2,129 | +$263 | +112.9% |
| Month 9 | $3,106 | +$384 | +210.6% |
| Month 12 | $4,532 | +$561 | +353.2% |
| Month 15 | $6,613 | +$818 | +561% |
| Month 18 | $9,648 | +$1,193 | +864.8% |
| Month 21 | $14,082 | +$1,741 | +1308% |
| Month 24 | $20,533 | +$2,540 | +1953% |
The entire power of this strategy depends on one discipline: reinvesting every month. Do not withdraw your earnings. Add them back to your ARB position instead. Your spot amount grows. Your futures amount grows. Your next funding payment is larger.
If you withdraw earnings monthly: $1,000 → $2,620 (only simple interest)
If you reinvest earnings monthly: $1,000 → $4,532 (compound interest)
Same strategy. Same rates. Same 12 months. Reinvesting earns you $1,912 more — without any additional effort.
The $20,533 figure is based on 13.5% monthly yield — achievable during strong bull market periods with funding rates around 0.15% per 8h. In quieter markets, monthly yields are lower:
| Market Condition | Rate/8h | Monthly Yield | $1,000 after 24 months |
|---|---|---|---|
| Quiet | 0.03% | 2.7% | $1,898 |
| Normal | 0.08% | 7.2% | $5,075 |
| Strong Bull | 0.15% | 13.5% | $20,533 |
Even at conservative 7.2% monthly — $1,000 becomes $5,075 in 2 years. Zero risk. No charts. No stress.
Zero risk. $20 bonus on first deposit of $100+.
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