Frequently Asked Questions

What exactly does this system do?

It allows you to earn yield from liquidity mining while neutralizing price risk.

The system automatically matches your liquidity position with a dynamic hedge, so gains and losses from price movement cancel out as much as possible.

What remains is primarily the yield from the liquidity pool and funding.

Is this completely risk-free?

No. Nothing in trading is completely risk-free.

The system is designed to remove directional price risk, but other risks remain, such as:

• Liquidation risk (if margins are too tight)
• Exchange risk
• Execution or setup errors

The goal is not zero risk — but controlled, structured risk.

What happens if the price moves sharply?

The hedge is designed to offset price movement.

If price drops, your liquidity position loses value — but your short position gains.

If price rises, the opposite happens.

As long as your positions are properly balanced and within safe margins, the impact of price movement is minimized.

What is liquidation risk?

Liquidation happens when your margin is insufficient to maintain a position.

In this system, you have two sides:

• The liquidity position (LP)
• The hedge (short)

Each has its own liquidation level.

The calculator ensures these levels are placed outside key support and resistance zones, giving you a safety buffer.

Do I need trading experience to use this?

Basic understanding helps, but the system is designed to simplify the process.

The calculator shows safe ranges, liquidation levels, and scenarios visually — so you don’t need to manually calculate hedge ratios.

Can I use this in the EU / under MiCA?

European regulations limit access to certain derivatives platforms — but they don’t eliminate your options.

You can still run your liquidity mining position on a regulated exchange, while executing your hedge on a derivatives-friendly platform.

The system is designed to work across both — so you stay compliant while maintaining full strategy control.

Do you have access to my funds?

No.

Funds remain on your exchange accounts at all times.

The system only uses API keys with trading permissions — withdrawals are not enabled.

What exchanges does this work with?

The system is designed to work with major exchanges that support:

• Liquidity mining / pools
• Futures or perpetual contracts

Examples include Bybit, MEXC, BloFin, and OKX.