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03
reduce crypto beta
Shrink shared market beta across the crypto sleeve using a single short rather than hedging each asset separately.
what it protects
the crypto sleeve as a whole
instrument
short on a liquid reference perp market
conditions
- a reference perp market is registered
- the sleeve has priced exposure
collateral
20% initial margin against the short leg
costs
- one opening fee instead of many
- residual tracking error
funding exposure
the short leg pays funding in persistently bullish markets
liquidation risk
concentrated in one leg; a sharp rally stresses margin quickly
basis risk
assets with low correlation to the reference remain largely unhedged
worked calculation
connect a wallet for live values
crypto exposure
Σ priced crypto holdings
hedge notional
crypto exposure × protection %
no live values yet — the calculation runs against real balances only.