How it works
After you deploy your capital, the agent builds a hedged position and maintains it.
- You deposit USDC and allocate it to the agent.
- The agent opens the spot leg. Roughly 75% of capital holds the underlying asset long.
- The agent opens the hedge. The remaining 25% backs a 3x short perpetual, sized so notional exposure matches and net delta stays near zero.
- The agent confirms permissions, executes orders, and applies its stop-loss.
- Funding accrues in USDC while the position is held at the top of every hour (this depends on the conditions of the exchange of execution).
- The agent rebalances automatically as prices and conditions change.
- If the short is stopped out, the whole position moves into USDC to keep the portfolio neutral.
The 3x leveraged short is what makes the strategy capital efficient. It amplifies funding capture without adding directional exposure, because the notional is matched against the spot leg.
What happens when funding changes
| Funding | What the agent does |
|---|---|
| Positive | The best case. The agent holds the position and yield accrues. |
| Flat | Yield still arrives, in smaller and less regular amounts. |
| Negative | The agent rebalances or closes positions rather than paying to hold. |
Risk controls
- Strict margin buffers on the leveraged leg.
- Defined liquidation thresholds.
- Exchange diversification across decentralized perpetual exchanges.
- Automated rebalancing to hold delta near zero.
🎥 Watch how Income: Funding Rates works