Market: Linear Derivatives
Held Asset: USD
Settlement Asset: USD
Strategy: Short
Available from: ALTs Top
Available until: ALTs Bottom
Key Features:
Leverage: 1.0x
Safety Net: 50%
Minimum Deposit: 10 ETH in USD ($10,000 using Hyperliquid exchange)
Maximum Deposit: $4,000,000 (per account or sub-account)
Expected Return: 3%+ per month.
Description: This approach uses USD to engage in linear derivatives markets. It employs the ETH index to programmatically sell (short) ETH contracts priced in USD when Ether's price trends higher and repurchase them when the trend reverses downward profiting from the difference between the average sell price and the repurchase price.
Important!
When it comes to derivative strategies, users should be aware that, due to leverage, there is a price at which the position will be liquidated unless additional margin is added to the account, also known as a margin call.
At cryptobots.io, we adopt a conservative approach to risk management by limiting leverage to a maximum of 1.5x out of 125x possible.
This conservative leverage level provides approximately a 50% safety net (measured from the average buy/sell price) before additional margin is required to maintain the position.