The risks
- Macro. Inflation reports, Fed decisions, Treasury yields. These move every position, crypto and stocks alike.
- Price moves. Markets on the asset itself reaching or breaking a level, like “Bitcoin dips to 230”.
- Earnings and company events. For stocks, things like an earnings miss, a margin call, or an index delisting.
- Sector. The force that actually drives a name. AI milestones for a chip maker like NVDA, a Bitcoin move for a crypto-treasury stock like MSTR.
How a hedge pays out
Each card is a prediction market you can hold. You pay a small amount up front. If the bad thing happens, the market pays out, and that payout offsets the loss on your position. If it does not, you are only out what you paid, the same way insurance works.Example. You are long BTC. You hold a market that pays out if BTC crashes to
$25,000. If it crashes, you lose on your perp but the market pays you, covering
much of the loss. If it does not, you are out the small premium, and your perp
is fine.
Good to know
- Crypto and stocks. Any Hyperliquid perp, not just the majors.
- Priced by the market. The cost reflects how likely the event is right now. Offset always shows the live number.
- It can expire. Each market is tied to a specific event or window, and settles when it resolves.