> For the complete documentation index, see [llms.txt](https://docs.renzofinance.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.renzofinance.com/products/renzo-basis/hype-basis.md). # HYPE Basis Hold spot HYPE, short the perpetual on Hyperliquid, and collect the funding. The Renzo Basis HYPE holds an equal amount of spot HYPE and short HYPE perpetual at the same time, both on Hyperliquid. The two legs cancel out price exposure, so the position's value barely moves when HYPE does. What it captures instead is funding: the recurring payment that longs pay shorts on a perpetual market. When funding is positive, the short leg collects it every hour. That payment, net of fees, represents the yield. The strategy doesn't just set the hedge and leave it. It actively watches the position and steps in when funding turns against you or the market moves sharply, so it both protects you from negative yield and keeps the hedge balanced in adverse conditions. ### How it Works The trade runs two legs at once: * **Long spot HYPE.** You hold the actual HYPE on your hyperliquid spot balance. * **Short HYPE perpetual.** An equal-notional short position on Hyperliquid. Because the legs are equal and opposite, any move in HYPE price produces a gain on one leg and an offsetting loss on the other. Net directional exposure (your delta) sits near zero. The position isn't trying to predict where HYPE goes. It sits in the middle and collects the funding that flows between the two sides of the perpetual market. ### Where the yield comes from Perpetual futures use funding to keep their price tethered to spot. When the perp trades above spot (longs are crowded), funding is positive and longs pay shorts. When it trades below spot (shorts crowded), funding is negative and shorts pay longs. Hyperliquid settles this hourly. Holding the short leg means you receive funding whenever it's positive. That recurring payment, minus trading and gas costs, is the strategy's return. It's mechanical and verifiable onchain, but it isn't fixed: funding rises and falls with market positioning, and it can go negative. We report realized, dated funding, never a projected rate. HYPE funding moves in a wider band than the larger perpetual markets. Positioning shifts faster on a smaller book, so both the size and the direction of the payment change more often. The guards below are what handle that. ### Choose your risk level When deploying funds to this strategy, you pick one of three levels. Each sets the leverage on the short leg, which is the trade-off between how much yield the position targets and how much safety margin it keeps before the safety buffer has to act.
LevelLeverageWhat it means
Conservative2xBiggest safety margin, lower yield.
Balanced3xSteady yield with a solid safety margin.
Aggressive5xHighest yield, smallest safety margin.
Higher leverage frees up capital and raises the yield the position targets, but it leaves a thinner margin before a sharp HYPE move puts the short leg at risk. ### Automations Three automated guards run continuously while your position is live. Each one watches for a specific problem and acts on it, and for most of them you choose how they respond. #### 1. Hedge guard Watches whether the two legs still match each other. If they stop matching, the hedge has broken. Because it watches the shape of the position rather than any single cause, it catches the same problem whether it came from auto-deleveraging, a perp liquidation, or a manual close. You choose how it responds: * **Auto** rebalances and restores the hedge automatically. * **Manual** does nothing and waits on your actions. #### 2. Yield guard Watches the funding. If the yield turns negative and starts costing you, it exits the position. You choose how it responds: * **Auto** exits to USDC if the 2 days net funding turns negative. * **Manual** does nothing and waits on your actions #### 3. Safety Buffer Watches for a sharp HYPE rally that puts the short leg's margin at risk. When it acts, it shrinks the entire position to reduce exposure rather than adjusting a single leg. The safety buffer triggers when the liquidation buffer falls below 10%. The position is then shrunk and rebalanced back to the user's preset. ### Fees **Builder fees:** Renzo charges a builder fee of 5 bps (0.05%) on the notional value of every fill. That cap is enforced by a signature you approve at setup, so Renzo can never charge more than 0.05% on a fill without your consent. **Referral fees:** Renzo also earns a share of Hyperliquid's referral rewards through the RENZOMARKETS code. In return, you get a 4% discount on trading fees for trades executed through the Renzo app. ### Risks to understand The guards lower these risks. They don't remove them. **Funding risk.** Funding can stay negative for stretches. The yield guard exits when it turns costly, but timing isn't perfect and re-entry depends on funding recovering. This is the single biggest driver of returns. **Liquidation risk.** Extreme, fast HYPE moves can threaten the short leg's margin faster than the safety buffer can shrink the position. The buffer lowers this risk but doesn't remove it. **Liquidity risk.** The HYPE spot and perpetual books are thinner than those of the majors. Entries, exits, and guard rebalances can fill at worse prices than expected, and that slippage comes out of the yield. **Venue and counterparty risk.** Both legs run on Hyperliquid, and moving funds in and out relies on a third-party bridge. An outage or disruption on either affects your position or your access to funds. HYPE concentrates this: the asset and the venue are the same ecosystem, so a disruption to Hyperliquid can hit the price of what you hold and your ability to act on it at the same time. **Execution risk.** The strategy runs off-chain through Renzo's backend and a trading-only key. The key can never withdraw your funds, but if the backend or key is unavailable, the protections can't act. ### Trading Keys This strategy runs on Hyperliquid through a trading key. The key is valid for 90 days and can be renewed at any time. Within the scope of this strategy, the trading key can only: * Open, adjust, and close positions * Place, modify, and cancel orders * Rebalance the hedge and act on the risk presets and guards you have configured The trading key cannot: * Withdraw funds from your Hyperliquid account * Transfer or send funds to any address * Approve additional keys or change your account settings * Access any venue, chain, or wallet outside Hyperliquid #### Renewal, Expiry, and Revocation When a key expires, the position remains open but unmanaged by default. Check in on your position periodically and renew the key before it lapses. To renew or revoke trading key permissions, go to Settings on the portfolio page, scroll to the trading key section, and select your preferred action. Keys can be renewed at any time, but must be renewed before they expire to keep the guards active. ### Deposits To deposit, visit the app: 1. Select the HYPE Delta Neutral Yield Strategy 2. Click Open Position. If no balance is detected, you will be redirected to fund your Hypercore USDC balance 3. Configure your risk and yield level 4. Sign and activate your position You can top up an existing position at any time: 1. Go to the portfolio page 2. Select Deposit and enter your amount Your risk configuration remains unchanged after a top-up. ### Withdrawals Withdrawals can be partial or full, depending on your trading amount. 1. Open the strategy page in the dApp and select the HYPE Delta Neutral Yield Strategy 2. Select Withdraw 3. Enter an amount and confirm Your risk configuration remains unchanged after a withdrawal. ### Adjusting Risk Parameters and Automations Risk settings for this position can be adjusted at any time. 1. Go to the portfolio page for the strategy 2. Click the settings icon 3. Select the automation you want to enable or disable Each configuration is either automatic or manual. On Auto, the Renzo Risk Guards monitor and act on the position without any input from you. On Manual, you are notified when an action is required and must step in to execute it yourself. Risk presets are adjusted on the same page. You can switch between Conservative (2x), Balanced (3x), and Aggressive (5x) in either direction, subject to the minimum trade amount for each preset. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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