Hedge risk and earn in volatile markets

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Long-term | Conservative

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What is a Crypto‑margined Hedging grid?

This is a hedging strategy designed for spot holders. If you hold a token long term (e.g., BTC or ETH), your biggest concern is downside risk when the price drops. This strategy helps manage that risk by running a 1x crypto‑margined short perpetual grid.

Core hedging mechanism: You use BTC as margin to create a 1x short grid. When BTC falls, profits from the short grid can help offset the unrealized losses on your spot holdings, providing a hedge.

Three income engines: While hedging, the bot may also generate additional income, such as grid profits, funding fee income, and Auto‑earn returns.

About this bot

In crypto, the shift from bull market euphoria to a bear market can happen fast. In July 2025, after BTC hit a new all-time high of 120,000 USDT, uncertainty rose sharply. Do you take profits and risk missing further upside, or keep holding and accept the downside risk?

The Crypto‑margined Hedging grid offers a third option: hold with more peace of mind, without trying to time the market. It helps reduce drawdowns by hedging during declines, and captures spread profits through grid trading during sideways moves. It may not deliver the highest returns in a bull market, but it can help you lose less in a bear market, and potentially stay profitable, so you can navigate the full market cycle more steadily.

Case study
Start

Leo is a long-term BTC believer. Even after BTC broke above 120,000 USDT, he continued holding 5 BTC. After BTC pushed to a new high around 120,000 USDT in July 2025, Leo expected a deep pullback and decided to start a hedging strategy.

On Jul 14, 2025, with BTC trading around 120,000 USDT, Leo used 5 BTC as margin to create a “BTC/USD 1x crypto‑margined short hedging grid,” with a price range of 80,000 - 130,000 USDT.

Market movements

Oct 28, 2025: During this period, BTC traded sideways between 108,000 and 125,000 USDT. Leo’s short grid repeatedly opened positions near the upper bound and completed short-term trades, building up grid profits while consistently earning funding fees.

Nov 1, 2025: Market sentiment reversed and BTC entered a downtrend, breaking below key support levels at 110,000 and 100,000 USDT before dipping to 90,000 USDT. During this move, Leo’s short grid saw a sharp increase in unrealized PnL and grid profits, fully offsetting the roughly 25% drawdown in the value of 5 BTC spot holdings.

Throughout: Grid profits and Auto‑earn compounding gradually increased Leo’s 5 BTC margin.

Payoff

By late Nov 2025, BTC had stabilized around 80,000 USDT, and Leo stopped the strategy. Results:

Successful hedge: Profits from the hedging grid covered the unrealized losses on spot holdings, helping Leo protect the gains Leo had built up during the bull market.

Extra income: During the run, Leo earned an additional 0.49 BTC from grid profits, funding fees, and Auto‑earn returns.

Throughout the sell-off, Leo stayed calm, because Leo’s position was hedged.

Bot setup

Zero profit sharing

Zero management fees

1.Each bot already has default settings. Simply enter how much you want to trade to create your bot.
2.These settings are either sourced from carefully-selected traders or generated by AI using backtested data. Note that this does not constitute any investment advice, and profits and losses are your own responsibility.
3.You can edit the settings to match your own trading strategy.
4.You can learn more about bot runtimes and risk ratings in our .

FAQ

Are there extra charges when using this bot?

This bot doesn’t charge profit share like copy trading, and doesn’t charge any management fees. However, for ordinary transactions that occur when buying low and selling high, the platform will charge transaction fees, and the specific rate is consistent with manual trading.

Will I always get high returns?

The historical performance of a bot is not a guarantee of future returns. Future returns from this bot may be higher or lower than historical backtested results, as market conditions and other factors affect actual performance.

Where can I view the bot’s settings?

You can view the bot’s settings in the order chart of each bot, and also under “Bot details” when creating a bot. If any of the settings don’t align with your strategy or risk tolerance, you can manually edit them.

What are the benefits of a crypto‑margined hedging grid?

1.Downside protection: A key advantage. A short grid can profit during pullbacks or bear markets, helping offset drawdowns in your spot holdings and giving you more confidence to hold.
2.Diversified returns: Not reliant on one-way upside. You can earn from three sources: market swings (grid profits), funding fees (time value), and yield on your crypto.
3.Higher capital efficiency: Your crypto-margined collateral can be used for both grid trading and Auto‑earn. One balance, multiple income streams.

What are the risks of a crypto‑margined hedging grid?

1.Bull-market risk: In a strong, one-way rally, a short grid may run at an unrealized loss, which can offset part of your spot gains. This is the main opportunity cost of buying downside protection.
2.Funding rate risk: If the market stays in negative funding for a prolonged period, short positions must keep paying funding fees, which may reduce returns.