Risks
Income: Funding Rates can experience losing periods. Delta neutrality reduces directional exposure. It does not guarantee positive yield or capital preservation.
Strategy-specific risks
Funding rate. Funding can decline, become insufficient to cover trading and operational costs, or turn negative. Extended favorable funding can produce negative or compressed yield.
Spot-perpetual spread. The two prices can diverge temporarily, particularly in volatile or illiquid markets, creating losses or unfavorable execution when positions are entered, rebalanced, or exited.
Volatility. Extreme price movements can trigger stop-losses or force position adjustments, increasing turnover, fees, and slippage.
Liquidity. Thin market depth can make it hard to maintain the hedge or exit both legs efficiently under stress.
Margin and liquidation. The perpetual leg uses leverage. Margin buffers and automated controls are in place, but leverage introduces liquidation risk if positions cannot be adjusted quickly enough in extreme conditions.
Rebalancing and execution. Neutrality must be actively maintained. Price changes, funding accrual, execution latency, and market conditions can temporarily misalign the legs. n Stablecoin depeg. USDC is the only stablecoin used, narrowing depeg exposure to one well-covered asset. USDC has operated since 2019 without a depeg greater than 3%, and since May 2021 depegging has not exceeded 0.002%.
On October 10th 2025, during the largest liquidation event crypto has seen, Income: Funding Rates held a 0.08% maximum drawdown.
These are the risks of running a delta neutral position anywhere. What differs is how the position is executed and monitored by the Deploy Finance agent.
Every position the agent opens is onchain and publicly auditable, and you can track your own Deploy Finance agent Wallet address on Hypurrscan, the Hyperliquid block explorer, at any time.