Binance MCP Server

Instructions

Implementation Reference

• binance.py:225-279 (handler)

  The handler function decorated with @mcp.tool() implements the execute_hedge_arbitrage_strategy. It performs hedge arbitrage by balancing spot and futures positions based on funding rate, using other tools for data and orders.

  @mcp.tool()
  def execute_hedge_arbitrage_strategy(symbol: str, quantity: str) -> Any:
      """
      Execute hedge arbitrage based on funding rate.
  
      Args:
          symbol: The trading pair.
          quantity: Amount to trade.
  
      Returns:
          Summary of the arbitrage result.
      """
      asset = symbol.replace("USDT", "")
      balance_result = mcp.use_tool("get_account_balance", asset)
      try:
          available_balance = float(balance_result.get("balance", 0))
      except:
          available_balance = 0
  
      actual_quantity = min(float(quantity), available_balance) if available_balance > 0 else 0
      if actual_quantity <= 0:
          return {"error": f"Insufficient {asset} balance."}
  
      funding_rate_data = mcp.use_tool("get_funding_rate_history", symbol)
      funding_rate = float(funding_rate_data[0]['fundingRate'])
      spot_price_data = mcp.use_tool("get_symbol_price", symbol)
      spot_price = float(spot_price_data["price"])
  
      if funding_rate > 0:
          mcp.use_tool("place_market_order", symbol, "BUY", actual_quantity)
          place_futures_order(symbol, "SELL", actual_quantity)
      else:
          mcp.use_tool("place_market_order", symbol, "SELL", actual_quantity)
          place_futures_order(symbol, "BUY", actual_quantity)
  
      time.sleep(10)
  
      if funding_rate > 0:
          place_futures_order(symbol, "BUY", actual_quantity)
          mcp.use_tool("place_market_order", symbol, "SELL", actual_quantity)
      else:
          place_futures_order(symbol, "SELL", actual_quantity)
          mcp.use_tool("place_market_order", symbol, "BUY", actual_quantity)
  
      SPOT_FEE = 0.001
      FUTURES_FEE = 0.0002
      fee = (spot_price * actual_quantity * SPOT_FEE * 2) + (spot_price * actual_quantity * FUTURES_FEE * 2)
      profit = abs(funding_rate) * spot_price * actual_quantity
      net_profit = profit - fee
  
      return {
          "net_profit": round(net_profit, 4),
          "fees": round(fee, 4),
          "message": f"Arbitrage executed. Estimated net profit: {net_profit:.4f} USDT"
      }

• binance.py:282-308 (helper)

  Supporting helper function place_futures_order used by the arbitrage handler to execute futures market orders on Binance.

  def place_futures_order(symbol: str, side: str, quantity: str) -> Any:
      """
      Place a perpetual futures market order.
  
      Args:
          symbol: Futures pair.
          side: BUY or SELL.
          quantity: Amount.
  
      Returns:
          Order placement result.
      """
      url = "https://fapi.binance.com/fapi/v1/order"
      timestamp = int(time.time() * 1000)
      params = {
          "symbol": symbol,
          "side": side,
          "type": "MARKET",
          "quantity": quantity,
          "timestamp": timestamp
      }
      query_string = "&".join([f"{k}={v}" for k, v in params.items()])
      signature = hmac.new(BINANCE_SECRET_KEY.encode(), query_string.encode(), hashlib.sha256).hexdigest()
      params["signature"] = signature
      headers = {"X-MBX-APIKEY": BINANCE_API_KEY}
      response = requests.post(url, headers=headers, params=params)
      return response.json() if response.status_code == 200 else {"error": response.text}