← strategy library
01
protect a pons position
Hold the Pons asset and open an offsetting short of equal notional so the position keeps its economics while directional risk is reduced.
what it protects
a single Pons token holding
instrument
registered short market for the same underlying, via the hedge router
conditions
- the asset is present in the market registry
- a hedge instrument is registered for the asset
- collateral is available in the wallet
collateral
20% initial margin against hedge notional under the default sizing model
costs
- taker fee on the opening leg
- price impact on entry and exit
- funding while open
funding exposure
paid or received continuously depending on the market's funding rate
liquidation risk
the short leg can be liquidated if the underlying rallies and margin is not added
basis risk
the hedge market and the token can diverge; coverage is never exactly one to one
worked calculation
connect a wallet for live values
detected exposure
balance × oracle price ÷ 10^decimals
hedge notional
exposure × protection %
collateral
hedge notional × 20%
no live values yet — the calculation runs against real balances only.