Risk Management
Hedging Protection
Section titled “Hedging Protection”The system uses delta-neutral hedging:
- Long and Short positions with equal size
- If price rises: Long profits, Short loses → Net = 0
- If price falls: Long loses, Short profits → Net = 0
- Profit comes only from funding fee differential
Position Verification
Section titled “Position Verification”The system continuously verifies that positions remain balanced:
| Check | Action |
|---|---|
| Bybit has position, KuCoin doesn’t | Auto-open hedge on KuCoin |
| KuCoin has position, Bybit doesn’t | Auto-open hedge on Bybit |
| Both positions closed | Stop monitoring, mark as done |
Hedging Scenarios
Section titled “Hedging Scenarios”The system handles 6 different scenarios:
| Scenario | Condition | Action |
|---|---|---|
| 1 | Both exchanges have positions | ✅ Monitor (fully hedged) |
| 2 | Bybit has, KuCoin empty | 🔄 Open partial hedge on KuCoin |
| 3 | KuCoin has, Bybit empty | 🔄 Open partial hedge on Bybit |
| 4 | No positions, pending orders exist | ⏳ Monitor orders |
| 5 | Clean state (no positions/orders) | 🚀 Open full hedge |
| 6 | Mixed state | ⏳ Monitor |
Liquidation Risk
Section titled “Liquidation Risk”Security Measures
Section titled “Security Measures”OAuth Security
Section titled “OAuth Security”- Zirodelta uses OAuth for secure exchange connections
- OAuth never grants withdraw permission
- Your funds remain safe on the exchanges
Fund Safety
Section titled “Fund Safety”Best Practices
Section titled “Best Practices”- Start Small - Begin with smaller amounts to understand the system
- Monitor Regularly - Check your positions and funding rates
- Diversify - Don’t put all capital in one trading pair
- Understand Fees - Factor in trading fees when calculating expected profits