The CB008 strategy is designed to help you manage and potentially grow your Solana (SOL) holdings by engaging in inverse derivatives markets. This guide explains how the CB008 strategy works, its key features, important risk considerations, and where you can activate it.

The CB008 strategy specifically focuses on inverse derivatives or swaps markets, with Solana (SOL) serving as both the held asset and the settlement asset. This means that while trades are executed, any profits generated are settled back into SOL, allowing you to maintain and potentially increase your SOL holdings.

This strategy executes long or short contracts priced in USD when the market trend moves against the system's direction. The goal is to close these trades profitably when the trend reverses, ensuring that profits are consistently settled in SOL, irrespective of the initial trade direction (long or short).

The CB008 strategy is available across all market cycles, specifically from a Bitcoin Dominance (BTC.D) top until a BTC.D bottom and vice versa, making it a versatile option for various market conditions. It is also noted as the most popular strategy among users.

The CB008 strategy comes with specific parameters designed to manage risk and provide clarity on its operational framework:

The core mechanism of the CB008 strategy involves trading in inverse derivatives or swaps markets using your SOL holdings.
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Here are examples illustrating trade movements within the strategy:

Important! When it comes to derivative strategies, users should be aware that, due to convexity and 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. This accounts for both the initial margin used and the effects of convexity.

At cryptobots.io, we adopt a conservative approach to risk management by limiting leverage to a maximum of 1.0x. This conservative leverage level provides approximately a 50% operational window (measured from the average price) before additional margin is required to maintain the position.

Understanding the risks associated with derivative strategies is crucial. While the CB008 strategy employs a conservative 1.0x leverage, all derivative positions carry the risk of a margin call and potential liquidation. A margin call occurs when the value of your position falls below a certain threshold, requiring you to deposit additional funds (margin) to maintain the trade. If you fail to meet a margin call, your position may be automatically liquidated by the exchange to cover potential losses.

Our commitment to a conservative 1.0x leverage significantly reduces this risk compared to higher leverage options, offering a substantial safety net of approximately 50% from the average price before a margin call would be triggered. This approach aims to protect your capital while still participating in the market.

For more information on our operational policies, you can read Do Cryptobots Custody My Funds or Manage My Portfolio? and Does Cryptobots Offer Investment Advice? Our Policy.

To activate the CB008 strategy and begin holding SOL profit via inverse derivatives, you will need an account with one of the following supported exchanges:

If you are ready to register and explore this strategy, follow this link to cryptobots.io. You can also visit our dedicated Solana Bots page to learn more about SOL-specific options.

If you have further questions about the CB008 strategy or need assistance with activation, please contact our support team.